00:00It's Benzinga bringing Wall Street to Main Street.
00:02The Federal Trade Commission is warning companies that using customers' personal data
00:06to set individualized prices could violate federal law, according to CBS News.
00:12The agency said consumers reasonably expect prices to be the same
00:15for shoppers viewing the same product at the same time.
00:19Businesses that adjust prices based on browsing habits, purchase history,
00:23household information, or other data without clearly disclosing the practice
00:27could be engaging in deceptive conduct.
00:30The FTC cannot ban personalized pricing in all cases,
00:33but it can take action against companies that fail to explain how personal data is used
00:38to determine prices.
00:39The agency cited examples including higher prices for groceries, hotel rooms,
00:44and ride-hailing services based on a consumer's circumstances
00:47or estimated willingness to pay.
00:49For all things money, visit Benzinga.com.
Comments