Personalized pricing is “abhorrent,” but FTC limits may increase costs, critics say
The US Federal Trade Commission is considering new limits on personalized pricing, where companies use consumer data to set individual price points. Critics argue that while the practice is controversial, strict regulations could inadvertently eliminate discounts or raise costs for consumers.
Why it matters
This debate highlights the tension between consumer privacy protections and market efficiency in the digital economy.
Predatory pricing Personalized pricing is “abhorrent,” but FTC limits may increase costs, critics say Some Americans fear the FTC may be thinking about personalized pricing all wrong.
49 FTC chair Andrew Ferguson wants to put businesses engaged in personalized pricing "on notice." Credit: Andrew Harnik / Staff | Getty Images News FTC chair Andrew Ferguson wants to put businesses engaged in personalized pricing "on notice." Credit: Andrew Harnik / Staff | Getty Images News Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav Some Americans worry that the Federal Trade Commission’s rush to limit personalized pricing in the name of consumer protection could end up killing discounts they depend on or, counterintuitively, raising prices.
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