Some Americans express concerns that the Federal Trade Commission's (FTC) efforts to limit personalized pricing may inadvertently eliminate discounts they rely on or lead to higher prices. The FTC does not have the authority to ban personalized pricing, which involves businesses using customer data to determine the maximum price an individual might pay. However, the agency is considering setting limits on this practice, including penalties for businesses that do not disclose when customers are charged higher prices based on their data. In a request for public comment on a proposed policy statement, FTC Chair Andrew Ferguson noted that while personalized pricing is prevalent in certain industries, new sectors are increasingly adopting this practice, which may confuse consumers who expect uniform pricing in retail markets.
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FTC's Proposed Limits on Personalized Pricing Raise Concerns About Potential Cost Increases
The FTC is exploring limits on personalized pricing, which some Americans fear could lead to the loss of discounts and increased prices. While the agency cannot ban the practice, it is considering penalties for businesses that fail to disclose pricing based on customer data.
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Personalized pricing is “abhorrent,” but FTC limits may increase costs, critics say
FTC's Proposed Limits on Personalized Pricing Raise Concerns About Potential Cost Increases