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What is personalized pricing? Here’s why companies could face federal charges for it

FILE: The FTC is seeking to crack down on so-called personalized pricing. (Photo Illustration by Matt Cardy/Getty Images) Companies that engage in a practice known as personalized pricing could face federal charges under a new rule proposed by the Federal Trade Commission. The new policy…

By Martin Johns1 min read

FILE: The FTC is seeking to crack down on so-called personalized pricing. (Photo Illustration by Matt Cardy/Getty Images)

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Companies that engage in a practice known as personalized pricing could face federal charges under a new rule proposed by the Federal Trade Commission.

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The new policy was released Wednesday. Here’s what to know:

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Personalized pricing is the practice of secretly varying prices based on how much companies think individual customers will pay. In a preliminary report filed last year, the FTC found that grocers, clothing companies and others were using third-party companies to help them individualize online prices based on shoppers’ locations, browsing histories and other factors, including how long they left items in their virtual shopping carts.

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In one hypothetical example, the FTC said a consumer profiled as a new parent might be shown higher-priced baby thermometers on the first page of their search results.

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MORE: Safeway closing more stores as Albertsons reshapes footprint after failed Kroger merger

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The FTC has been eyeing personalized pricing for several years.

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"When consumers see a listed price, they expect it to be (the) same price that everyone else sees, not the retailer’s estimate of how much they are willing to pay based on…

Original source: https://www.livenowfox.com/money

Martin Johns

I am working as the content publisher and moderator for the website <a>Foxnews.com Breaking News</a>. You can read and provide your views about the news.

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