FTC orders Delta, Walmart and others to disclose how consumer data influences prices

The U.S. Federal Trade Commission said Wednesday it is ordering Delta Air Lines, Walmart and other companies to provide detailed information about how they use consumers’ data to set prices.

The commission said it is also studying how ride-sharing and delivery companies like Uber use their independent drivers’ personal data when setting compensation rates.

What they're saying:

"We intend to scrutinize the opaque methodology that some companies in these industries may be using to determine how much consumers pay or how much gig workers are paid for the same product or service," FTC Chairman Andrew Ferguson said in a statement.

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Dig deeper:

Orders were also issued to United, JetBlue, Lyft, DoorDash, Instacart and Target, the FTC said.

Each company must share information that will allow the commission to assess whether pricing for tickets, rides, food delivery or other products and services varies from one person to the next based on factors such as participation in loyalty programs or analysis of personal data, the agency said.

The FTC said it is also examining whether companies compensate workers based on personal data like their phone usage or their history of accepting rides or deliveries. If the companies fail to turn over data, the FTC said it could compel compliance in federal court.

The other side:

Delta said in response that it has "zero tolerance for discriminatory or predatory pricing" and fully complies with pricing and advertising laws.

"There is no fare product Delta has ever used, is testing or plans to use that targets customers with individualized offers based on personal data," the company said in a statement.

JetBlue said it doesn't use personal information or web-browsing history to set individual prices.

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"Fares are determined by demand and seat availability, and all customers have access to the same fares," the company said.

The Associated Press reached out to Walmart, Target, DoorDash and others for comment. Walmart's CEO said in a statement last month that the retailer doesn't use personal information like income, shopping history or a customer’s willingness to pay to set prices, and it won’t be doing so in the future either.

The backstory:

The FTC's actions reflect customers' increasing concerns about pricing technology and the use of artificial intelligence to collect vast amounts of data. Legislators in at least 30 states have considered pricing-related bills this year, including measures addressing algorithmic and personalized pricing, according to the National Conference of State Legislatures.

In August, the FTC announced a proposed policy that would require businesses to "clearly and conspicuously disclose" if they are engaging in personalized pricing and share the types of data they’re using to set those prices. The agency has extended the comment period on that policy until Nov. 21.

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In a preliminary report filed in January 2025, the FTC found that grocers, clothing companies and others were using third-party companies to help them individualize online prices based on shoppers’ locations, browsing histories and other factors, including how long they left items in their virtual shopping carts.

But Ferguson, who assumed the chairmanship of the FTC when President Donald Trump took office, has said that report was rushed and should have asked the companies directly for data instead of focusing on third-party intermediaries.

The Source: The Associated Press contributed to this report. The information in this story comes from the Federal Trade Commission, which announced the orders and outlined its investigation into personalized pricing and gig-worker compensation. This story was reported from Los Angeles.