● Covered by 1 source · 1 reportMedium impact1 neutral
FTC Orders Major Companies to Disclose Personalized Pricing and Pay Algorithms
Key points
- FTC ordered nine companies to disclose data use for pricing and pay.
- Companies include JetBlue, Delta, Uber, DoorDash, Walmart, Target.
- Probe focuses on personalized pricing for consumers and gig worker pay.
- Companies have 45 days to respond to the FTC orders.
FTC Initiates Data Probe
The Federal Trade Commission (FTC) has issued orders to nine prominent companies across various sectors, including food delivery, airlines, ride-sharing, and retail. These companies are required to submit detailed information regarding their practices in utilizing personal data to determine individual consumer prices and employee compensation.
Companies Under Scrutiny
The orders were sent to JetBlue, Delta, United, Lyft, Uber, DoorDash, Instacart, Walmart, and Target. The FTC has the authority to compel compliance through federal court if the companies fail to respond within the stipulated timeframe. This action follows a previous order in July 2024 to eight other companies concerning similar data surveillance practices.
Purpose of the Investigation
The FTC stated that the collected information will enable the agency to evaluate whether pricing for services like tickets, ride-shares, or food delivery fluctuates based on factors such as participation in loyalty programs or analysis of personal data by algorithms. For companies employing gig workers, the probe will examine the 'inputs, tools and procedures' used to adjust individual worker compensation and customer pricing based on personal data and unique characteristics.
Addressing Opaque Methodologies
FTC officials plan to investigate the 'opaque methodology' that firms might be employing to decide customer charges or individual gig worker pay. The agency's chair, Andrew Ferguson, indicated that consumers deserve transparency regarding whether companies exploit online browsing or other personal data to determine the highest price a customer might pay or the lowest wage a worker might accept. The orders require a response within 45 days.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
The Federal Trade Commission (FTC) has ordered nine major companies, including airlines, ride-sharing, food delivery, and retail firms, to provide detailed information on how they use personal data to set individual consumer prices and employee compensation. This action aims to assess whether pricing and pay vary based on personal data analysis and loyalty programs, and to scrutinize the methodologies used for these decisions.