NCL Submits Comments Supporting FTC Policy Against Personalized Pricing

Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

Washington, DC—On Friday, the National Consumers League, joined by 26 other public interest organizations, submitted comments in response to the Federal Trade commission’s (FTC) proposed policy regarding personalized pricing, also known as surveillance pricing. NCL supported the FTC’s position that failing to disclose personalized pricing likely violates the law. NCL also urged the FTC to hold businesses accountable for uses of personalized pricing that would seriously harm consumers even if disclosed.

“The idea that businesses can spy on us without limit, and be financially rewarded for the same behavior, is fundamentally repulsive,” said NCL Senior Public Policy Manager Eden Iscil. “Companies need to focus on competing and improving their product rather than invading our privacy.”

The FTC cited numerous examples in its proposed policy of possible deployments of personalized pricing, such as charging dying rideshare users higher fares if they are being transported to a hospital or raising grocery prices for mothers taking care of multiple children. These specific examples and many others should be prohibited under the law, even if disclosed. In addition to the FTC Act, these and similar uses of personalized pricing likely violate federal and/or state anti-discrimination laws prohibiting prejudice against certain traits, including having a disability, familial status, and other protected classes.

In drafting the comments, NCL received assistance from the Center for Consumer Law & Economic Justice at the U.C. Berkeley School of Law, which served as counsel, as well as the National Consumer Law Center and Truth in Advertising, Inc.

The full comments can be found here.