FTC Compels Six Firms to Reveal Pricing Algorithms

Consumer pricing has long been a source of friction between buyers and sellers, but regulators have moved beyond general oversight to demand granular technical details. On Wednesday, the Federal Trade Commission issued orders requiring six major companies to disclose how they utilize personal data in their pricing models and compensation structures.

The orders target Delta Air Lines, United Airlines, JetBlue, Walmart, Target, and several gig economy platforms including Uber, Lyft, DoorDash, and Instacart. Each entity must provide data allowing the commission to determine if prices for flights, rides, or goods vary by individual. The FTC is specifically looking for evidence that factors like loyalty program status or web browsing history influence the final cost a customer pays.

Chairman Andrew Ferguson stated the agency intends to scrutinize what he described as opaque methodologies used by firms in these sectors. Ferguson, who took office when President Donald Trump assumed the presidency, indicated that the commission is also examining how ride-sharing and delivery companies set pay for independent drivers. The data request includes information on whether compensation rates depend on a driver's phone usage or their history of accepting specific jobs.

The companies responded with varying levels of confidence regarding their practices. Delta Air Lines asserted it has zero tolerance for discriminatory or predatory pricing and claimed full compliance with existing laws. The airline stated that it has never used, is not testing, and does not plan to use fare products that target customers with individualized offers based on personal data.

JetBlue echoed this stance, clarifying that it does not use personal information or web-browsing history to set individual prices. The airline noted that fares are determined strictly by demand and seat availability, ensuring all customers have access to the same rates. Walmart’s CEO had previously stated in a statement last month that the retailer does not use income levels, shopping history, or willingness to pay data to set prices and intends to maintain that policy.

The regulatory push coincides with a wave of legislative activity at the state level. According to the National Conference of State Legislatures, lawmakers in at least 30 states have considered pricing-related bills this year. These measures address algorithmic and personalized pricing, reflecting growing public concern over the use of artificial intelligence to collect and analyze vast amounts of consumer data.

This action follows a preliminary report filed by the FTC in January 2025. That report found grocers and clothing companies were using third-party intermediaries to individualize online prices based on location, browsing history, and how long items remained in virtual shopping carts. Ferguson criticized that earlier report as rushed, arguing the agency should have requested data directly from the companies rather than focusing on intermediaries.

The FTC has stated it can compel compliance in federal court if the companies fail to turn over the requested information. The agency recently extended the comment period for a proposed policy on personalized pricing disclosures until November 21. That policy would require businesses to clearly and conspicuously disclose if they engage in personalized pricing and identify the types of data used to set those prices.