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FTC orders Target, Walmart to provide details in personalized pricing inquiry

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FTC orders Target, Walmart to provide details in personalized pricing inquiry

The agency sent the order to nine companies to examine how personal data is being used, even through loyalty programs, to potentially alter price tags.

Amid a broader investigation, Walmart and Target received orders from the Federal Trade Commission to provide information for the government agency to study the use of personal data to set prices.

The orders — which were also sent to several airline companies, ride-sharing firms and food delivery entities — require the retailers to provide details to help assess if the “pricing for a ticket, ride share, food delivery or other product or service varies from one person to the next” based on analysis of personal data from artificial intelligence and more.

The 15-page order from the FTC also asks for details on how companies adjust or set compensation based on personal information. It also requested information on how prices can vary based on factors such as loyalty programs.

“We intend to scrutinize the opaque methodology that some companies in these industries may be using to determine how much consumers pay or how much gig workers are paid for the same product or service,” FTC Chairman Andrew Ferguson said in a statement from a Wednesday press release. “Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer. Workers also deserve to know if their compensation is affected by how companies use their personal data.”

The order recipients have 45 days from the date they receive the orders to respond, and the FTC has the power to compel compliance in federal court if needed, per the announcement.


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