FTC orders Target and Walmart to provide details on personalized pricing inquiry

The Federal Trade Commission has issued orders to Target and Walmart as part of a broader inquiry into whether personal data collected through customer programs can be used to change prices for individual shoppers. The investigation centers on practices that may rely on behavioral or identity information to tailor pricing, potentially even down to what customers see on store or online price tags.

The FTC’s order was sent to nine companies, according to the report, and is aimed at understanding how personal data is used in connection with pricing decisions. While loyalty programs are widely used to provide discounts and track customer preferences, the FTC is specifically examining whether those systems could also be used to alter pricing outcomes for different consumers.

For Target, the inquiry matters because the retailer operates loyalty- and engagement-oriented programs that collect information about purchases and customer behavior. The FTC is questioning the use of that information not only for marketing or offers, but for possible effects on the prices consumers face. Walmart similarly faces questions about how any customer data connected to loyalty or account-based shopping could be used in pricing processes.

The report frames the agency’s concern as part of a data use and consumer fairness issue. By collecting information about what customers buy, when they buy, and potentially how they interact with offers, retailers can segment shoppers. The FTC is focused on whether those segments translate into different pricing, including the possibility of personalized price tags.

The orders request details, the report says, which indicates the FTC is collecting information before deciding what enforcement steps, if any, may be appropriate. The post does not describe the specific documents or data fields requested, but it indicates that the agency wants a clearer picture of the operational link between personal information and pricing mechanics.

Sector-wide, the inquiry comes at a time when retailers increasingly rely on data-driven personalization. Loyalty programs, online account systems, and targeted promotions can improve ad effectiveness and inventory planning, but they also increase scrutiny over transparency and the ethical use of customer data. Personalized pricing is a long-debated topic because consumers often cannot observe whether the price they see is influenced by their data profile.

A key limitation in what is publicly described so far is specificity. The report does not provide the dates the orders were issued, the deadline for responses, or the particular pricing systems at issue. It also does not state whether the FTC has identified wrongdoing, only that it is seeking information to evaluate practices tied to its concerns.

What to watch next is whether Target and Walmart provide more detail about their loyalty program data flows and pricing controls, and whether the FTC expands the inquiry beyond the nine companies or moves toward enforcement actions. In the near term, retailers may also review internal policies around how customer data is used in pricing decisions and how such processes are documented for regulators.