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What Data Can Businesses Use to Personalize Prices—and What Can You Do?

Businesses may use location, browsing, purchase history, and inferred data to tailor prices or discounts. Learn how to compare offers and what a VPN can—and cannot—do.
Length4 min Posted Quest giverVGSources Team
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Businesses may use personal and behavioral data to tailor the prices, discounts, or products a customer sees. Possible inputs include location, demographics, browsing and purchase history, cart activity, and information inferred from other data. But a price that changes is not proof that a business used your profile: demand, inventory, timing, location, and eligibility can also explain a difference. You can compare like-for-like offers and check the final checkout total, but a VPN or private browsing is not a proven way to get a lower price.

What information can a business use to personalize prices?

Federal Trade Commission (FTC) materials describe a broad range of possible signals. A business or its pricing intermediary could use them to estimate what a person may be willing to pay, choose a discount, target a price to a group or individual, or influence which products appear most prominently.

  • Location: general or precise location, which may also affect ordinary location-based pricing.
  • Personal and demographic details: information supplied directly by a customer or associated with their demographics.
  • Online behavior: browsing and search activity, mouse movements, or products left in a cart.
  • Shopping and purchase history: previous purchases or a customer’s history with the seller or its partners.
  • Inferred or external information: attributes derived from other data and information obtained from first- or third-party sources.

The FTC’s issue spotlight on surveillance pricing notes that these practices may affect more than the price: they may shape product selection and raise privacy and competition concerns.

What the FTC’s study does—and does not—show

In January 2025, the FTC described an initial staff review of documents from Mastercard, Accenture, PROS, Bloomreach, Revionics, and McKinsey & Co. It said the intermediaries covered by that review worked with at least 250 clients selling goods and services, including groceries and apparel. That figure is a count of clients, not 250 retailers confirmed to have charged individualized prices, and it does not show how many consumers received such prices. The FTC characterized the review as preliminary and said its study was ongoing; some examples in the staff account were hypothetical because information from the study had to be aggregated or anonymized. The agency did not provide a population-wide estimate of how common individualized pricing is. Read the FTC’s 2025 study announcement.

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Is a price change personalized pricing or dynamic pricing?

Personalized pricing uses personal data to set a price based on how much a business estimates an individual is willing to spend. Dynamic pricing changes with factors such as demand or inventory. A difference by time or location alone does not establish that a seller used your browsing history or customer profile. The FTC’s fees FAQ says dynamic pricing may be used when the pricing information is not misleading. See the FTC’s Rule on Unfair or Deceptive Fees FAQ.

A promotion or member price also needs context: a price limited to qualifying customers should not be presented as the generally available total price before the customer qualifies. When comparing offers, account for whether you meet the promotion’s terms as well as the seller, channel, location, and timing.

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How to compare offers and check the price you will pay

  1. Match the offer. Compare the same product or service from the same seller or channel where possible. Note the date and time, location, membership or promotion eligibility, and delivery terms. Differences in these conditions can explain different prices without proving personalization.
  2. Compare the complete total. Check the amount due before payment, including mandatory fees, shipping, taxes where shown, and any choices that change the total. FTC guidance requires clear presentation of total pricing for covered fees and says the final amount should be shown before payment.
  3. Keep a record if checkout changes the offer. Save screenshots or other details showing the advertised price, the checkout total, and the relevant terms. This can help you document what changed and what the seller disclosed.

There is no reliable consumer-side test in the cited FTC materials that isolates whether a particular price difference came from a personal profile rather than demand, inventory, location, or another condition.

Can incognito mode or a VPN get you a lower price?

Private browsing or a VPN may limit some signals, but the FTC’s materials do not show that either reliably prevents personalized pricing or produces savings. They also do not establish that deleting cookies or changing a VPN endpoint reveals a neutral price. A seller may have account, transaction, location, inferred, or third-party information beyond what a browser session exposes.

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If convenient, you can review account and loyalty-program settings and limit unnecessary app or browser permissions. Treat these as ways to reduce some data collection—not as guaranteed price-lowering steps. The FTC mentioned private browsing and VPN use as possible consumer measures in its 2026 proposed policy statement announcement.

What to do if you suspect misleading pricing

  • Keep the offer, checkout details, and any relevant terms or screenshots.
  • Consider whether the seller misrepresented who qualified for a price, concealed how personal data was used, or used misleading urgency.
  • If you suspect deception, consider reporting it to the FTC. The agency says deceptive representations and undisclosed use of personal data may violate laws it enforces; whether they do depends on the facts and applicable law.
  • If a practical alternative exists, choose another retailer when you do not trust a seller’s data practices. FTC staff identify opaque prices and barriers to finding alternatives as factors that can increase consumer harm.
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What the FTC’s 2026 statement means

In August 2026, FTC Chairman Andrew Ferguson said: “The FTC does not have the legal authority to ban personalized pricing in all circumstances, but businesses that fail to tell consumers how their personal data is being used to set a price may be in violation of the FTC Act and other laws we enforce.” The statement accompanied a proposed enforcement policy statement and a public-comment process—not a final rule or a blanket ban. The FTC later extended the comment deadline to September 25, 2026. Its eventual action, and rights under state or non-U.S. law, are not established by these federal materials. Read the FTC’s comment extension announcement.

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