Walmart and Delta ordered to explain data-driven pricing methods

Walmart, Delta Air Lines, and five other major companies must now provide the Federal Trade Commission with detailed records on how they use consumer data to set prices. The agency issued the orders on Wednesday, targeting retailers, airlines, and delivery services. The move forces these firms to reveal if they charge different customers different amounts for the same product or service.

The FTC is also examining compensation practices in the gig economy. The agency wants to know if companies like Uber and Lyft use independent drivers' personal data, such as phone usage or ride acceptance history, to determine pay rates. This follows growing public scrutiny over how algorithms influence everyday costs.

The regulatory push builds on earlier findings. In January 2025, the FTC released a preliminary report stating that grocers and clothing retailers used third-party firms to individualize online prices. Those prices were based on shopper location, browsing history, and how long items sat in virtual carts. FTC Chairman Andrew Ferguson, who took office with President Donald Trump, later criticized that report as rushed. He argued the agency should have requested data directly from the companies rather than relying on intermediaries.

The commission's actions align with a trend in state legislatures. According to the National Conference of State Legislatures, lawmakers in at least 30 states have considered bills on algorithmic and personalized pricing this year. At the federal level, the FTC proposed a policy in August that would require businesses to clearly disclose if they use personalized pricing and what data drives those prices. The comment period for that proposal runs until November 21.

The companies have responded with varying degrees of clarification. Delta stated it has zero tolerance for discriminatory or predatory pricing. The airline said in a statement that no fare product targets customers with individualized offers based on personal data. JetBlue confirmed it does not use personal information or web-browsing history to set individual prices, noting that fares are determined by demand and seat availability.

Walmart's CEO said in a statement last month that the retailer does not use personal information, such as income or shopping history, to set prices. The company said it will not begin doing so in the future. The Associated Press reached out to Target, DoorDash, and other firms for comment on the new orders.

The FTC said it can compel compliance in federal court if the companies fail to turn over the requested data. The orders were issued to United, JetBlue, Lyft, DoorDash, Instacart, and Target in addition to Delta and Walmart. Each firm must share information that allows the commission to assess whether pricing varies based on loyalty program participation or other personal data analysis.