What Does the FTC Proposal Require?
| Status | Proposed. Comment period closed September 25, 2026 (extended from September 18) |
|---|---|
| Issued | August 19, 2026 |
| Who it covers | Businesses that use personal data to set an individual consumer’s price, where consumers reasonably expect a common price |
| What it asks for | Clear and conspicuous disclosure that the price is personalized, the basis for the personalization and the types of data used |
| Legal effect | Non-binding. Describes how the FTC would apply Section 5 of the FTC Act case by case |
| Ban? | No. The FTC states Congress has not given it authority to prohibit personalized pricing in all circumstances |
| Enforcement | Federal Trade Commission, under its deception and unfairness authority |
When Could Personalized Pricing Be Deceptive Under the FTC Act?
The proposal points to three patterns: presenting a price as uniform or widely offered when it is personalized; failing to disclose personalization where consumers expect a common price; and misstating the basis for personalization. The FTC’s own example is a price presented as reflecting the shopper’s purchase history that actually reflects their shopping habits at other firms.
Does the FTC Proposal Cover Data Bought from Vendors?
Under the proposed approach, the business itself is expected to verify consent for vendor data used in pricing, rather than rely on contract assurances from the vendor.
Is the FTC Policy Statement Final?
No. It is a proposed enforcement policy statement. The FTC may revise it after reviewing comments, and a policy statement does not have the force of a rule.
How Can a Business Comply with the FTC Proposal?
- 1. Classify: Map every input behind a price by source and sensitivity.
- 4. Disclose: Write the customer explanation from the rule that set the price.