The Federal Trade Commission’s (FTC) proposed enforcement policy statement on personalized pricing signals that businesses may face scrutiny when they use consumer-specific data to set different prices for different customers without disclosing that practice. The statement is not binding law, but the FTC says it intends to use its existing Section 5 authority to address potentially deceptive or unfair practices. Its focus is distinct from ordinary dynamic pricing based on market-wide factors such as supply, demand, or inventory: personalized pricing relies on information or inferences tied to an individual consumer or household.

For businesses, the practical question is not only whether a price varies, but what data and assumptions drive the variation, and what consumers are told about them. The FTC’s position is that an effective disclosure should clearly state that the price is personalized, explain the basis for the personalization, and identify the types of data used; privacy notices and consent practices may also warrant review.

Companies can start by mapping where consumer-specific data affects prices, then assessing disclosures across websites, checkout flows, phone scripts, and chat interfaces. To view the full FTC statement, click here.