The U.S. Federal Trade Commission (FTC) ordered nine companies Wednesday, Oct. 28, to explain whether personal information affects consumer prices or workers’ job offers and pay, launching a study of data practices across several industries.
The orders cover Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart. The FTC is examining prices for airfares, rides, food delivery and other goods and services, including whether they vary with loyalty-program participation or analysis of personal data.
For ride-share and delivery work, the agency is asking whether phone use or workers’ records of accepting offers affect job offers or compensation. FTC Chairman Andrew N. Ferguson said, “Workers also deserve to know if their compensation is affected by how companies use their personal data.”
The FTC issued the orders under Section 6(b) of the FTC Act, which allows the agency to conduct studies without a specific law-enforcement purpose. The Commission approved them in a 2-0 vote. The inquiry is not a finding that any company uses personalized pricing.
The order template requests descriptions of the methods, tools and data used to set prices, make job offers and determine pay. Its covered period starts Jan. 1, 2023, and continues until full compliance. The template’s document-production section excludes individual customer and subscriber records, along with the contents of customer communications. The FTC can seek to compel compliance in federal court.
Companies have described some of their practices. Walmart CEO John Furner said in a Sept. 25 letter that the retailer would not use details such as income or shopping history to charge an individual more. Target’s Oct. 15 fact sheet says it may use shopping history to show relevant loyalty offers but not to increase item prices. The FTC said an earlier personalized-pricing study focused on third-party intermediaries rather than companies that set prices directly.
The companies’ responses are the next stated milestone. The order template sets a 45-day deadline after service, while the FTC announcement describes the period as running from receipt; neither source lists company-specific deadlines.
