Why Retail Must Engage in the FTC’s Personalized Pricing Debate

You know the stories. They start with, “when I was a kid.” I have one of those stories. 

When I was a kid (see?), every week my dad would sit down at the kitchen table with the sales ads for the various stores in town to compare prices. We’d get in the car and travel from store to store picking up groceries, back to school supplies, and household items. While I whined about when we’d be done so we could get ice cream, he’d say, “it will take as long as it takes because we aren’t made of money, and we have to shop around for the best deals.” 

It stuck. Today, I am just as much of a bargain shopper as my dad was, but thanks to investments by retailers, I do not have to travel from place to place checking inventory. With a click of button, I can easily see what’s in stock, how much it costs, and where to buy it. From the loyalty programs that offer deals on my favorite Greek yogurt, to the points I earn on new lipstick or shoes, today’s technology makes it easier and faster.   

It is a symbiotic relationship. A consumer voluntarily provides a retailer with some information about themselves and, in exchange, they provide consumers with coupons and discounts.

However, some view the technology and data that save consumers money and make shopping faster and easier, whether in-store or through delivery, as doing more harm than good. 

The Federal Trade Commission (FTC) recently announced that it is seeking public comment on an enforcement policy related to personalized pricing practices. The move is the latest Trump Administration effort to crack down on hidden fees and surprise charges. 

The proposal will be open for a 30-day public comment period, which is currently scheduled to close on September 18th. Last week, RILA submitted two separate letters – one from RILA itself and the other from RILA and partners across the trade industry seeking an extension to the comment period. Simultaneously, RILA is working to gather member input in preparation for filing robust comments on the proposed enforcement policy. To ensure that the Commission receives an informed retail perspective, it is important to have retailers weigh in. As a RILA member, please consider the following: 

✔️  View the proposed enforcement policy here.

✔️ Share this update with colleagues responsible for your company's FTC portfolio, as their expertise and perspectives will be valuable for RILA’s advocacy efforts. 

✔️ Contact Michelle Dimarob, Sr. EVP of Public Affairs at michelle.dimarob@rila.org to share any feedback or connect us with colleagues. 

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