Airlines Face FTC Inquiry Over Personalized Pricing

The Federal Trade Commission has launched an inquiry into whether nine large companies, including three major airlines, engage in 'personalized pricing.' This tactic involves setting different prices for customers based on information about them. Airlines deny using surveillance-like tactics to set fares, citing marketplace conditions and consumer demand. However, concerns over airline pricing have grown louder, with some carriers charging solo travelers higher prices than those booking with companions. The FTC is focused on whether companies disclose their pricing tactics, rather than the use of personalized pricing itself. Airlines are transparent about some strategies, such as offering award discounts to credit card holders. The inquiry also extends to ride-hailing companies, big-box retailers, and delivery services, which have been ordered to provide information on their pricing tactics. Dynamic pricing, which can cause fares to change rapidly, has raised concerns among consumers. Experts argue that the lines between ordinary pricing tactics and surveillance pricing have begun to blur.