FTC Orders Walmart, Target to Disclose Personalized Pricing Data

The Federal Trade Commission has ordered Walmart and Target to provide information on whether they use personal data and artificial intelligence to set individualized prices, part of a broader inquiry that also targets airlines, ride-sharing and food delivery companies. The 15-page order seeks details on how prices vary between customers and how compensation for gig workers is set based on personal information, including through loyalty programs. Recipients have 45 days to respond, and the FTC can compel compliance in federal court. "We intend to scrutinize the opaque methodology that some companies in these industries may be using to determine how much consumers pay or how much gig workers are paid for the same product or service," FTC Chairman Andrew Ferguson said in a Wednesday press release. Target said it does not use personal information to raise prices and pointed to a fact sheet stating its Target Circle loyalty program surfaces deals rather than raising prices. Walmart did not immediately respond to a request for comment. The orders follow the FTC's August request for public comment on personalized pricing.