The Federal Trade Commission is seeking information from Walmart, Target and seven other companies as it examines whether personal data is used to set prices for individual shoppers or determine workers’ pay. The orders stem from an inquiry announced Oct. 28 and do not, by themselves, indicate that any company has broken the law.
The other companies named are Delta, United, JetBlue, Uber, Lyft, DoorDash and Instacart. The FTC wants details about the data, software and methods used in pricing, including how companies group customers and when they override a pricing decision. Most requests cover activity since Jan. 1, 2023, while research and testing records are requested from 2021 onward.
The inquiry distinguishes personalized pricing from changes driven by market conditions. Dynamic pricing can respond to supply, demand or competitors’ prices, as with airline fares or ride-hailing surcharges. Personalized pricing uses information about a person to help determine the price offered, potentially based on estimates of what that customer would pay. The FTC’s definition also covers coupons, discounts and promotions, and includes data such as browsing and purchase histories, location and income.
The orders were approved 2-0 under Section 6(b) of the FTC Act, which allows the agency to conduct market studies without a specific law-enforcement purpose. FTC Chairman Andrew Ferguson said consumers should know whether companies use browsing habits or other personal data to estimate the highest price they can charge.
Walmart has said it does not use customers’ personal information to determine the prices they see or pay online or in stores. The company has also said its digital shelf labels do not set prices independently: employees review approved changes, which are typically made outside shopping hours. In March, Walmart said about 2,300 U.S. stores were using the labels, with a chainwide rollout expected within the following year.
Target has said it does not use personal information to raise an item’s price or adjust prices according to the time of day or high demand. Its Target Circle loyalty program may use shopping history to present members with relevant deals, according to a fact sheet issued Oct. 15.
The FTC is also asking how personal information affects job offers, worker pay and the division of customer payments between workers and companies. Its order excludes salaried employees and hourly workers with fixed schedules from its definition of workers. Companies must also describe what they tell customers and workers about these practices, including the wording and placement of disclosures.
The agency previously sought records from pricing vendors in 2024. Findings published the following January said the providers reviewed served at least 250 clients, including grocery and apparel retailers, and that their tools could use shopper data to vary prices, target discounts or influence which products customers saw.
The nine companies have 45 days from receiving the orders to respond. The FTC may ask a federal court to compel compliance.
Sources: WWD.