FTC orders Delta, Walmart, and Uber rivals to explain pricing algorithms

The Federal Trade Commission issued formal orders on Wednesday requiring Delta Air Lines, Walmart, and seven other major companies to disclose exactly how they use consumer data to set prices. The orders target the opaque methods these firms use to determine what customers pay for tickets, goods, and services. The commission is also examining how ride-sharing and delivery platforms calculate compensation for independent drivers.

FTC Chairman Andrew Ferguson stated the agency intends to scrutinize how these companies determine payment amounts. He noted the inquiry covers both consumer pricing and gig worker pay for identical products or services. The orders were sent to Delta, Walmart, United, JetBlue, Lyft, DoorDash, Instacart, and Target.

Each company must provide information that allows the commission to assess pricing variability. The FTC wants to know if costs differ for specific individuals based on loyalty program status or personal data analysis. The agency is also looking for evidence that worker pay is influenced by phone usage or a driver’s history of accepting jobs.

Delta responded by saying it has zero tolerance for discriminatory or predatory pricing. The airline stated it fully complies with pricing and advertising laws. Delta added that it has never used, is not testing, and does not plan to use fare products that target customers with individualized offers based on personal data.

JetBlue said it does not use personal information or web-browsing history to set individual prices. The company explained that fares are determined by demand and seat availability, giving all customers access to the same rates. Walmart’s CEO stated last month that the retailer does not use personal information like income or shopping history to set prices and will not do so in the future.

Legislators in at least 30 states have considered pricing-related bills this year, according to the National Conference of State Legislatures. These measures address algorithmic and personalized pricing. In August, the FTC proposed a policy requiring businesses to clearly disclose if they engage in personalized pricing and share the data types used. The agency extended the comment period on that policy until November 21.

A preliminary FTC report from January 2025 found that grocers and clothing companies used third-party firms to individualize online prices. Those prices were based on shopper location, browsing history, and time spent with items in virtual carts. Ferguson, who assumed the chairmanship when President Donald Trump took office, said that January report was rushed. He argued the agency should have asked companies directly for data instead of focusing on third-party intermediaries. If the companies fail to turn over the requested data, the FTC said it could compel compliance in federal court.