The Federal Trade Commission has ordered Delta, United and JetBlue to turn over information about whether they use personal data to set prices. The FTC announced the orders on October 28 as part of a wider inquiry that also covers pay at ride-sharing and delivery companies.
What the FTC Did
The FTC issued orders to nine companies: Delta, United, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart. The orders ask for information showing whether prices vary from one person to the next based on factors such as loyalty program participation or analysis of personal data. The inquiry also covers pay for workers at the ride-sharing and delivery companies.
The Commission approved the orders by a 2-0 vote. FTC Chairman Andrew N. Ferguson said: "Consumers deserve to know whether companies use their web surfing habits or other personal data to estimate the highest price they can charge each consumer."
What Stage This Is At
The orders were issued under Section 6(b) of the FTC Act. That authority lets the FTC run broad studies that don't have a specific law enforcement purpose. Each company has 45 days to respond, and the FTC can seek compliance in federal court if a company doesn't.
This is a study. It isn't an enforcement action against the airlines. In August, the FTC separately sought public comment on a proposed enforcement policy statement on personalized pricing.
Background
The orders ask airlines for information. Our earlier coverage of AI and airline pricing has background on the debate.
