NACS Files Comments on FTC Personalized Pricing Proposal

On Friday, NACS submitted comments to the Federal Trade Commission’s (FTC) Proposed Enforcement Policy Statement Regarding Personalized Pricing, emphasizing “the many ways that reward, promotional and other common discount programs benefit consumers and retailers alike.”

The Proposed Statement outlines the FTC’s position on personalized price-setting for consumers and its intent to enforce against pricing practices it sees as unfair or deceptive.

NACS’ comments said the Proposed Statement would benefit from both clearer definitions of key concepts—including the vague term “personalized pricing”—as well as recognition that many discount and loyalty programs are long-standing features of competitive markets that are embraced by consumers.

“Businesses competing for customers by offering them a discount is a good thing,” said Brennan Duckett, director of regulatory and policy at NACS. “The FTC should celebrate discounts, not try to chill them. People are worried about how they can afford the things they need right now, and the FTC should take care not to make that problem worse.”

Both businesses and consumers would benefit from a uniform and enforceable legal framework for pricing issues. But to get there, the comments make clear that the Proposed Statement should:

• Establish a foundational and precise definition of “personalized pricing.”
• Distinguish between the concepts of price-setting and audience selection.
• Clearly allow loyalty, other rewards, or discount programs.
• Provide detailed guidance on consumer data disclosure compliance.

“The pricing promotions that retailers offer are tremendously popular with consumers,” said Duckett. “Shoppers welcome discounts—especially as they face the current affordability crisis. They have been welcoming discounts since the beginning of commerce.”

NACS pointed out that market forces, such as the high visibility of fuel prices and competitive nature of the convenience business, incentivize convenience retailers to give customers the best prices they can—including through discounts. Therefore, new pricing disclosure requirements are not necessary and would be burdensome to small businesses, leading to a chilling effect on price incentives that benefit millions of consumers.

“The Commission should undertake additional planning work before engaging in the enforcement actions suggested by the Proposed Statement,” said Duckett. “We are ready to participate in a constructive dialog that will help the Commission shape its policies in a way that actually benefits consumers.”