FTC demands pricing data from Target Walmart
The FTC pricing data request orders Target and Walmart to disclose how personal information shapes shopper prices, examining consumer discrimination.
The Federal Trade Commission has issued orders to Target and Walmart demanding detailed information on how the retailers may use personal data to set prices for shoppers.
The 15-page order, sent to nine firms, also reaches several airline carriers, ride-sharing platforms and food-delivery services, asking them to explain whether prices vary from one consumer to another based on data analysis.
The FTC request asks for specifics on how companies adjust compensation and pricing using artificial-intelligence insights, loyalty-program information and other personal attributes.
“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.
The companies have 45 days to respond; the commission can seek a court order to enforce compliance if any retailer fails to meet the deadline.
Target pointed Retail Dive to a fact sheet released earlier this month, stating it does not use personal information to raise prices based on a shopper’s identity, location or timing. The retailer added that price differences reflect local costs, regulations and competition, and that the Target Circle program uses purchase history only to surface relevant deals, not to increase charges.
The fact sheet, posted on the company’s website, also describes the brand’s broader pricing philosophy and emphasizes that promotions are designed to match regional market conditions rather than individual shopper profiles.
The commission opened a public comment period on personalized pricing in August, and this week joined twenty states in a lawsuit against Dollar General alleging deceptive pricing practices. The lawsuit claims the chain advertised lower prices online while charging higher amounts at physical locations, a tactic the states say misleads shoppers.
The comment period, which began in August, allows stakeholders to submit observations about personalized pricing and offers the agency additional insight as it evaluates the breadth of the issue.
