FTC orders Target, Walmart and others to detail personalized pricing

· Retail & E-commerce · United States

The Federal Trade Commission has ordered Target, Walmart and seven other companies to provide details on how they use personal data — including through loyalty programs — to potentially set different prices for different shoppers. Retail Dive reported that the agency sent the order to nine companies as part of an inquiry into personalized pricing. The action puts a spotlight on surveillance-linked pricing practices at a moment when consumers, heading into the holidays, are especially focused on price. It follows separate scrutiny of large retailers over pricing and promotions. The orders require the companies to explain their data and pricing practices; the items did not specify further steps the agency might take. The inquiry signals regulatory attention to whether loyalty data can legally be used to vary the prices shoppers see.

Why it matters：If regulators restrict how loyalty and browsing data feed into pricing, retailers' personalization and margin strategies — central to e-commerce and loyalty economics — would need reworking.

Key points

  • Orders went to nine companies, including Target and Walmart.
  • Focus is on use of personal data, including loyalty programs, to potentially alter prices.
  • Consumers are especially price-focused ahead of the holidays.

Sources (original reporting)

More stories from this day