FTC Orders Delta, United, JetBlue, Uber, Lyft, DoorDash, Instacart, Target and Walmart to Explain How They Use Personal Data to Set Prices and Worker Pay
Fox Business says the agency wants to know whether customers pay different prices for the same thing based on their browsing and personal data. Several companies deny the practice. Each has 45 days to answer.
Federal regulators are asking whether the price you see online is the price everyone sees, Fox Business reports.
The orders. The Federal Trade Commission announced Wednesday that it opened an inquiry into nine companies: Delta Air Lines, United Airlines, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart. It is ordering each to say how it uses consumers' and workers' personal data to set prices and pay.
The question. The FTC wants to know whether airline tickets, rides, food deliveries and other goods and services cost different people different amounts, and whether loyalty programs or data analysis by algorithms play a role. It also asks whether ride-hailing and delivery firms set pay for gig workers using "opaque formulas" built on things like phone usage or a driver's history of accepting offers.
The chairman. FTC Chairman Andrew Ferguson said: "Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer." He said workers "deserve to know if their compensation is affected by how companies use their personal data."
The replies. Instacart told Fox Business it "does not and will not engage in surveillance pricing." JetBlue said fares are set by demand and seat availability and everyone sees the same fares. Delta said it has never used, tested or planned a fare product that targets customers with personalized offers based on personal data. Walmart said it appreciates the FTC's focus on transparency and affordability. Fox says it asked United, Lyft, Uber, DoorDash, Target and Walmart for further comment.
What happens next. Each company has 45 days from receiving the order to respond. The FTC says companies that fail to provide the information could face legal action to compel it.
Note for readers: this is an information request, not a finding of wrongdoing. The FTC has not said any company charged customers different prices.