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FTC Orders 9 Companies to Explain Pricing and Compensation Methodologies

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FTC Orders 9 Companies to Explain Pricing and Compensation Methodologies

The Federal Trade Commission (FTC) has ordered nine companies to provide detailed information about their pricing and compensation methodology, the regulator said in a Wednesday (Oct. 28) press release.

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This data will inform the FTC’s newly launched inquiry into the use of personal data to set prices and compensation, according to the release.

The FTC issued the orders to Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart. The regulator issued the orders under Section 6(b) of the FTC Act, and it has the power to compel compliance in federal court if a company fails to provide the required information. The recipients must respond within 45 days of their receipt of the order, the release said.

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Reached by PYMNTS, Delta provided an emailed statement saying: “There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal data. We have zero tolerance for discriminatory or predatory pricing and fully comply with applicable privacy, pricing and advertising laws.”

Delta also shared a July 31 letter in which a Delta executive responded to what the airline said was misinformation around artificial intelligence pricing.

PYMNTS also requested comment from each of the other eight companies named by the FTC but did not immediately receive a reply.


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