The FTC has ordered nine major companies to disclose how they use personal information to determine prices and worker compensation.
The inquiry covers airlines, retailers, ride-hailing services, and delivery platforms, including Delta, Uber, Walmart, and DoorDash.
Regulators want to understand whether customers receive different prices for the same products or services based on their personal data.
The Federal Trade Commission (FTC) is examining whether major companies use personal information to tailor prices to individual consumers and compensation to individual workers.
The agency issued compulsory information requests to Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target, and Walmart. Companies have 45 days after receiving the orders to respond.
FTC Chairman Andrew N. Ferguson said consumers should know whether businesses analyze their browsing activity or other personal information to estimate how much they are willing to pay. The inquiry also examines whether drivers’ phone usage or history of accepting work offers influences their compensation.
Just seeking information
The information requests are part of a study under Section 6(b) of the FTC Act. The announcement does not establish that any recipient violated the law.
The accompanying order shows how broadly regulators plan to examine the companies’ practices. It seeks detailed explanations of the formulas, software, and data used to adjust prices, assign jobs, and calculate pay. Most requests cover practices dating to January 1, 2023.
Companies must identify which information varies by customer or worker, describe how their systems use it, and explain when employees modify or override the results. The FTC also wants to know where the information and pricing tools originate, including whether outside vendors supply them.
What it could show
For consumers, the inquiry could help explain how personal information affects the offers they see. The order asks companies to document whether their methods increase or decrease prices, expand access to products and services, or produce other benefits and costs.
For gig workers, regulators are seeking an accounting of how customer payments are divided between worker compensation and company revenue. The agency also wants to understand how personal information influences which workers receive particular jobs.
Another focus is disclosure: Companies must provide the wording, location, and dates of explanations given to customers and workers about these practices. Those responses could help regulators assess how clearly businesses explain the role personal data plays in everyday transactions.