The U.S. Federal Trade Commission warns retailers that using private consumer data to set or influence prices—such as through personalized pricing—requires clear disclosure. The FTC says businesses should inform consumers when prices are based on personalization tied to personal information, and that failing to do so may expose companies to legal risk, including lawsuits.
The agency emphasizes that disclosures should be sufficiently specific. In addition to telling consumers that personalized pricing is used, the FTC indicates retailers should explain what personal data is involved and the general basis for how personalization is applied. Outlets describe the warning as a compliance-focused action, highlighting that the requirement centers on transparency when consumer data is used to shape pricing decisions.
