Big brands face scrutiny over data-driven pricing

Sign up for the free Daily Report email – local news about the people, companies and issues that impact business impact business in Baton Rouge and beyond.

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

“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.

Advertisement

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.

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.

The Associated Press has the full story.

Comments (0)

From Our Partners

Daily Report Poll

ASK AI

Ask anything about Baton Rouge business