The FTC is asking nine companies whether your personal data changes the price, because apparently the checkout page has been profiling you
The agency ordered airlines, rideshare and food-delivery companies to explain how personal information may affect what consumers pay and what gig workers are offered.
Same Ride, Different Wallet
The Federal Trade Commission ordered Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart to provide information about personalized pricing and compensation. The agency wants to know whether companies use loyalty-program participation, web activity, phone usage, acceptance history or other personal data to set prices or worker pay.
The orders do not announce a finding that the companies broke the law. They are a Section 6(b) study, giving the FTC authority to demand wide-ranging information even without a specific enforcement case.
The Algorithm Has A Tiny Cash Register
The FTC says it is studying whether a customer can be shown a price unique to them based on personal information, and whether gig workers receive different compensation offers based on opaque formulas. Companies have 45 days to respond.
Consumers already know surge pricing, dynamic pricing and loyalty discounts. The new question is whether the machine also knows that you are late, tired, hungry and standing outside in the rain—and has decided this is an excellent moment to become a landlord.
The Bottom Line
The inquiry could eventually produce policy, enforcement or simply a very large document explaining why the burger costs $18 today. For now, the FTC is asking the basic question: if a company uses your data to calculate the highest price you will tolerate, should it have to tell you?
Source
Federal Trade Commission: FTC launches personalized pricing and compensation inquiry