FTC Chairman Andrew Ferguson Warns of Online Radicalization, Vows to Protect Kids in AI Race and Crack Down on Robots to Cut Costs for Families in ‘Varney & Co.’ Federal regulators announced Wednesday that they are examining whether major airlines, ride-hailing companies, delivery services and retailers are using personal data to charge different customers different prices for the same products and services or determine how much workers are paid. The Federal Trade Commission (FTC) said it has launched an investigation into nine companies, ordering them to provide information about how they use consumers’ and workers’ personal data to set prices and compensation. The orders were sent to Delta Air Lines, United Airlines, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart, according to the FTC. The agency said it is seeking information to assess whether prices for airfare, travel, food deliveries and other products or services vary from person to person. DOLLAR GENERAL SUED BY FTC AND 20 STATES, ACCUSED OF OVERCHARGING CUSTOMERS FTC Chairman Andrew Ferguson said consumers deserve to know if companies use their browsing history or other personal information to determine the highest prices they can charge. (Stefani Reynolds/Bloomberg via Getty Images/Getty Images) Federal regulators will next examine whether factors such as loyalty programs and the analysis of personal data by superintelligence algorithms influence consumer prices and workers’ compensation. “We intend to examine the opaque methodology that some companies in these industries may be using to determine how much consumers pay or how much workers are paid for the same product or service,” FTC Chairman Andrew Ferguson said in a statement. “Consumers deserve to know whether companies use their web browsing habits or other personal data to estimate the highest price they can charge each consumer,” Ferguson continued. Ferguson said workers “deserve to know whether their compensation is affected by how companies use their personal data.” (Sundry Photography/Getty Images/Getty Images) In its press release announcing the investigation, the FTC noted that ride-hailing and food delivery companies can offer workers variable compensation based on “opaque formulas.” These companies, the FTC said, “may engage in personalized compensation based on their drivers’ personal data, such as their phone usage or their history of accepting past offers.” An Instacart spokesperson told FOX Business that the online grocery marketplace “does not and will not engage in surveillance.” WALMART LAUNCHES NEW PACKAGE COMBINING WALMART+, SAM’S CLUB PLUS JetBlue told FOX Business that it does not use customers’ personal information or browsing histories to set individual fares, saying ticket prices are based on demand and seat availability. (Mario Tama/Getty Images)”We appreciate the FTC’s approach to this practice, are committed to transparency and improving affordability for customers, and will continue to engage with policymakers and regulators to ensure they understand how pricing works on our platform.” JetBlue told FOX Business that it “does not use personal information or web browsing history to set individual prices.” “Fares are determined by demand and seat availability, and all customers have access to the same fares on jetblue.com and our mobile app,” the airline added. Delta also denied using personal data to individually price fares, saying it has never used, tested or planned to use a fare product targeting customers with individualized offers based on personal data. FOX Business has contacted United, Lyft, Uber, DoorDash, Target and Walmart for comment. CLICK HERE TO DOWNLOAD FOX NEWS APP The FTC said companies that do not provide the requested information could face legal action to enforce compliance. Each company has 45 days from the date of receipt of the order to respond.
