House Oversight Committee Pushes FTC to Tighten Rules on AI-Driven Price Discrimination

The House Oversight and Government Reform Committee, led by James Comer, has formally requested a briefing from the Federal Trade Commission on its pending rule targeting surveillance pricing. This practice involves companies such as Amazon, Walmart, Lyft and Target using AI to create detailed consumer profiles and then adjusting prices according to perceived willingness to pay. The proposed rule would obligate businesses to clearly disclose not only that a price is personalized but also the specific data sources behind it.

While the FTC lacks authority to ban all personalized pricing, it can pursue actions against deceptive or unfair applications under Section 5 of the FTC Act. Critics argue that loyalty-program data sales, exemplified by Kroger’s $500 million 2024 deal, amplify the issue by feeding third parties with consumer information. The committee’s move signals heightened congressional concern over hidden price discrimination across sectors ranging from groceries to travel.