FTC proposes rule forcing retailers to disclose personalized pricing tactics

The Federal Trade Commission released a proposed regulation that would obligate e-commerce retailers to transparently disclose any use of personalized pricing and the specific consumer data driving those price differences. FTC Chair Andrew Ferguson emphasized that shoppers assume a posted price applies universally, not that it reflects an estimate of their willingness to pay. A preliminary 2025 FTC report had already highlighted that grocery and apparel retailers, among others, employ third-party firms to adjust online prices based on factors such as geographic location, browsing patterns, and the duration items remain in a virtual cart.

The draft rule states that failing to provide a clear, conspicuous notice and an explanation of the data used could constitute an unfair or deceptive practice under the FTC Act. While the agency lacks authority to ban all forms of price personalization, it seeks to curb hidden practices. The public can submit comments on the proposal for the next 30 days.