FTC Signals Increased Scrutiny of Personalized Pricing Practices, Asks for Public Comment

On August 19, 2026, the Federal Trade Commission (FTC) announced a proposed Enforcement Policy Statement on Personalized Pricing and opened a 30-day public comment period.

The proposal acknowledges that Congress has not provided the FTC with authority to prohibit personalized pricing outright, the FTC intends to aggressively enforce existing Section 5 and related consumer protection authorities against personalized pricing practices that are deceptive, unfair, or insufficiently disclosed.

What Is Personalized Pricing?

The FTC defines personalized pricing as using a consumer’s personal data to determine the price offered to that consumer based on the business’s assessment of the individual’s willingness to pay. The agency’s concern centers on the growing ability of businesses to leverage large volumes of consumer data to charge different prices for goods or services that consumers traditionally expect to be offered at a uniform price.

The FTC’s Core Concern: Transparency

The proposal is grounded in the FTC’s view that consumers generally expect the price displayed for a product or service to be the same price available to other consumers at the same time and place. According to the FTC, consumers may be misled when businesses use personal data to adjust prices without clearly disclosing that fact.

The FTC proposed Enforcement Policy states that inadequate disclosure of personalized pricing likely violates Section 5 of the FTC Act. The FTC further takes the position that businesses engaging in personalized pricing should provide clear and conspicuous disclosures regarding:

• The fact that a price is personalized
• The basis for the personalization
• The types of personal data used to determine the price [Federal Tr…ed Pricing]

Potential Section 5 Exposure

The proposed policy statement identifies several ways personalized pricing could give rise to liability under Section 5 of the FTC Act:

• Representing or implying that a price is static or widely offered when it is actually personalized
• Failing to disclose that a price has been personalized
• Misleading consumers about the reasons a price was personalized
• Collecting, using, or sharing personal data for personalized pricing purposes without adequate notice or consent

The FTC also suggests that undisclosed personalized pricing may be “unfair” where consumers cannot reasonably avoid the resulting higher price because they are unaware the practice is occurring or do not know what information is being used against them.

Practices Likely to Attract FTC Attention

The proposal provides several examples of potentially problematic personalized pricing practices, including charging higher prices based on:

• A consumer’s likely ability/inability to leave home to purchase food
• Household composition, such as the presence of children
• Travel related to funerals or other urgent personal matters
• Whether a consumer has downloaded competing apps
• Health-related inferences suggesting an urgent medical need
• Crime-victim status
• A consumer’s presence in a retailer’s store or parking lot while shopping online

Key Takeaways for Businesses

Although the proposal does not, standing alone, create new legal obligations, it provides a clear roadmap for future FTC enforcement in this space.

Businesses that use AI, predictive analytics, loyalty program data, browsing history, geolocation information, or other consumer data to influence pricing should carefully evaluate their disclosures and data practices.  The FTC enforcement policy follows a major legislative wave in the U.S., with over 60 bills a year introduced in state legislatures in 2025 and 2026 on personalize or surveillance pricing.

In particular, companies should consider:

• Whether consumers are clearly informed that pricing may be personalized
• Whether disclosures adequately explain how pricing decisions are made and what data is used
• Whether consent mechanisms and privacy notices address pricing-related uses of consumer data
• Whether internal documentation can support the accuracy and fairness of personalized pricing models. [Federal Tr…ed Pricing]

Call for Comment

The FTC’s proposal reflects a growing regulatory focus on data-driven pricing practices. While personalized pricing itself remains lawful in many circumstances, the agency has made clear that undisclosed or inadequately disclosed personalized pricing will likely face increased scrutiny. Businesses that use consumer data to tailor prices should consider reviewing their pricing, privacy, and disclosure practices now in anticipation of heightened enforcement activity in this area.

The FTC’s 30-day comment period for this proposed Policy Statement opened on August 19, 2026 and will remain open until September 18, 2026, at 11:59 PM EDT. Persons or businesses wishing to comment may do so electronically through the FTC Enforcement Policy Statement docket at https://www.regulations.gov/docket/FTC-2026-1057, using the electronic comment feature.

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