The FTC is cracking down on companies that charge you a "personalized price"

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Ripple effect: The Federal Trade Commission is putting companies on notice over their use of personal consumer data to set individualized prices. In a bulletin issued Wednesday, the FTC said businesses must clearly disclose when they use detailed information about a consumer to generate a personalized price offer, including the types of data used.

The agency said it cannot ban personalized pricing under its current authority, but it will pursue enforcement action against companies that fail to meet its disclosure requirements.

The warning addresses the growing use of automated pricing systems that rely on consumer data. Companies can use browsing histories, location, device type, shopping behavior, and other signals to estimate how much a person may be willing to pay. AI-based pricing software can process that information quickly and adjust offers for individual users.