FTC orders Delta, Walmart, and others to explain personalized pricing methods

The Federal Trade Commission is forcing major U.S. companies to reveal how they use consumer data to set prices. On Wednesday, the agency issued orders to Delta Air Lines, Walmart, United, JetBlue, Lyft, DoorDash, Instacart, and Target. These firms must provide detailed information on their pricing algorithms. The commission wants to know if customers pay different amounts for tickets, rides, or groceries based on their personal data.

FTC Chairman Andrew Ferguson said the agency intends to scrutinize the methodology used to determine what consumers pay. He noted that some companies may use opaque systems to set rates. The orders also target gig economy workers. The FTC is studying how ride-sharing and delivery companies use driver data, such as phone usage or ride acceptance history, to set compensation rates. If the companies fail to turn over the requested data, the FTC said it could compel compliance in federal court.

Delta Air Lines responded by stating it has zero tolerance for discriminatory or predatory pricing. The company said it fully complies with pricing and advertising laws. Delta claimed it has never used, is not testing, and does not plan to use fare products that target customers with individualized offers based on personal data. JetBlue offered a similar defense, saying it does not use personal information or web-browsing history to set individual prices. The airline stated that fares are determined by demand and seat availability, and that all customers have access to the same rates.

Walmart has previously addressed the issue. Last month, the retailer’s CEO said in a statement that the company does not use personal information like income, shopping history, or a customer’s willingness to pay to set prices. The CEO said Walmart will not use such data in the future. The Associated Press reached out to Walmart, Target, DoorDash, and other named companies for comment on the new FTC orders.

The commission’s actions follow a preliminary report filed in January 2025. That report found that grocers and clothing companies used third-party firms to individualize online prices. The report cited factors such as shopper location, browsing history, and how long items sat in virtual shopping carts. Ferguson, who assumed the chairmanship when President Donald Trump took office, said the initial report was rushed. He argued the agency should have asked companies for data directly instead of focusing on intermediaries.

State legislatures are also moving on this issue. According to the National Conference of State Legislatures, lawmakers in at least 30 states have considered pricing-related bills this year. These measures address algorithmic and personalized pricing. The FTC announced a proposed policy in August that would require businesses to clearly disclose if they engage in personalized pricing. The agency must also share the types of data used. The comment period for that policy is extended until November 21.