Full Breakdown
FTC Proposes Disclosure Rule on Personalized Pricing
8/24/2026, 2:08:16 AM
Core Event: Draft Statement Targets Personalized Pricing
The Federal Trade Commission announced a draft statement that would require businesses to disclose when a price is set using a consumer’s personal data. The agency warned that firms that fail to provide such disclosures could violate the FTC Act and other statutes. The proposal is being released under the Trump-Vance administration, which reversed a Biden-era FTC study on the practice that had been halted in 2025.
Background & Context: From “Surveillance Pricing” to “Personalized Pricing”
During the Biden administration, the FTC began an investigation into “surveillance pricing” in 2024, led by Chair Lina Kahn. The study was terminated in 2025 after the Trump administration took office. The new draft replaces the term “surveillance pricing” with “personalized pricing” and “individualized prices,” a shift reflected in recent coverage by major news outlets.
Data & Statistics: Illustrative Price Differentials
Official Statements & Responses
FTC Chairman Andrew Ferguson said the agency lacks authority to ban personalized pricing outright but emphasized that nondisclosure could breach the FTC Act. He added that the draft statement is intended to put businesses “on notice” that the commission will enforce existing laws when personal data is used to set prices.
Consumer Reports issued a statement supporting stronger consumer protection and called for legislative action to prohibit the use of individual data for price setting altogether.
Senate Judiciary Committee hearings featured bipartisan criticism of the practice, with senators labeling it predatory.
Criticism & Opposition
The Rhode Island Retail Federation opposed state-level legislation that would define “dynamic pricing” and “surveillance pricing” as deceptive practices. In written testimony on March 3, the federation called the proposed “baseline price” standard ambiguous and warned that data analytics are essential for inventory, supply-chain, and fraud management.
State Legislative Actions
Rhode Island’s Senate Bill 2428, introduced by Senator Dawn Euer, would classify both dynamic pricing and surveillance pricing as deceptive trade practices, with enforcement through the state attorney general and a private right of action for consumers. The bill was heard in Senate Commerce on March 24 and was subsequently held for further study.
A companion House measure, H7849, introduced by Representative Alex Marszalkowski, targets algorithmic price increases that push online prices above a baseline when personal data is used.
Verbatim Quotes
- “The FTC does not have the legal authority to ban personalized pricing in all circumstances, but businesses that fail to tell consumers how their personal data is being used to set a price may be in violation of the FTC Act and other laws we enforce,” — FTC Chairman Andrew Ferguson
- “We are seeking public input on this draft statement, which would put businesses engaged in or considering personalized pricing on notice that the Trump-Vance FTC will not hesitate to enforce the law in this space,” — Andrew Ferguson, FTC chairman
What’s Next
The FTC is seeking public comment on the draft statement. The agency indicated that the comment period will remain open for several weeks, after which it will consider revisions before finalizing any rulemaking. State legislators in Rhode Island and elsewhere continue to evaluate bills that would expand consumer protections against personalized pricing.
