# FTC Demands Transparency on Algorithmic Pricing and Gig Worker Pay The **Federal Trade Commission (FTC)** has intensified its scrutiny of personalized pricing and compensation models, issuing orders to nine prominent companies to provide detailed information on their data utilization practices. The inquiry targets how these firms harness personal data, potentially employing advanced algorithms, to set individual consumer prices and determine compensation for gig workers. ## Companies Under the Microscope The orders were dispatched to a diverse group of industry giants, including airlines **JetBlue**, **Delta**, and **United**; ride-sharing platforms **Lyft** and **Uber**; food delivery services **DoorDash** and **Instacart**; and retail behemoths **Walmart** and **Target**. Failure to comply within the stipulated 45-day period could result in federal court action by the agency. ## Unpacking Algorithmic Decisions The **FTC**'s objective is to ascertain whether pricing for services like airline tickets, ride shares, or food deliveries varies among individuals based on factors such as loyalty program participation or extensive analysis of personal data by what the agency refers to as "superintelligence algorithms." This extends to companies employing gig workers, which are required to provide the "inputs, tools and procedures" used to adjust individual worker compensation and customer pricing based on personal data and unique characteristics. **FTC** Chair **Andrew Ferguson** highlighted the agency's intent to scrutinize the "opaque methodology" firms might be employing to decide what to charge customers or how to compensate individual gig workers. He emphasized that consumers deserve transparency regarding whether their online browsing habits or other personal data are exploited to determine the highest price they are willing to pay, or the lowest wage a worker might accept. Specifically, ride-share and food-delivery companies are under examination for potentially compensating workers on a fluctuating basis, using obscure formulas that leverage drivers' personal data, including phone usage and historical payment acceptance. ## A New Approach After Prior Setbacks This latest probe follows a previous **FTC** order in July 2024, which sought information from eight companies regarding their alleged facilitation of third-party surveillance to create differential pricing. Preliminary findings from that study, drawing information from consultancies like **McKinsey & Co.**, **Accenture**, and **Revionics**, were released by then-outgoing Chair **Lina Khan** in January 2025. However, **Ferguson** subsequently objected to Khan's release, closing that probe and declining to fully disclose its findings. The agency stated that the prior study was flawed because it relied on information from "middlemen consultancies" and yielded "nothing about actual pricing decisions." This new inquiry aims to correct that by demanding information directly from the companies potentially engaging in personalized pricing. ## Public Input and Future Enforcement In August, the **FTC** also solicited public comments on a proposed enforcement policy statement. This statement outlines how undisclosed use of consumers’ unique personal data to set prices could be deemed unlawful under the **FTC Act**, signaling a strong regulatory stance against potentially exploitative data-driven pricing practices.