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Personal data may shape online prices, but differences prove little

Retailers’ pricing tools can use personal data, but a different online price may have other causes. Here is what the evidence shows and how to compare offers.
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Yes, it can—but a different price does not prove that a retailer used your personal data to set it. Pricing tools can use signals such as location, shopping activity, or browsing behavior to tailor prices or promotions. They can also change which offers appear first without changing any price. Those are distinct practices, and the available evidence does not establish how often US shoppers actually pay more because of a personal profile.

How personal data could affect an online offer

The Federal Trade Commission (FTC) reported initial findings in January 2025 from documents it examined in a study of pricing intermediaries. The agency said tools offered by the firms could let retailers tailor prices or promotions using consumer-related data, behavior, preferences, location, time, and sales channel. Examples of possible signals included product searches and purchases, mouse movements, and products left in a cart. The FTC also said the intermediaries it examined worked with at least 250 clients selling goods and services ranging from groceries to apparel; that is a count of those intermediaries’ clients, not a count of retailers proven to charge individualized prices.

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The FTC’s examples describe capabilities, not proof that every retailer uses them or that a particular shopper was charged more. One example—a shopper profiled as a new parent being shown more expensive baby thermometers—was hypothetical. The agency said public findings used aggregated or anonymized data to protect confidential business information. Read the FTC’s January 2025 findings and its background on the study.

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Personalized pricing is not the same as dynamic pricing or ranking

  • Dynamic pricing: A price changes with factors such as demand, available supply, time, or sales channel. A change between visits may have nothing to do with your identity.
  • Personalized pricing: Personal data helps a company set different prices for different consumers.
  • Personalized ranking: A site changes the order or selection of offers shown to you. The underlying prices may remain the same.

If you and your partner see different products or sellers at the top of search results, that alone does not show that you were quoted different prices for the same product.

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What studies have found—and what they have not

A European Commission study published in 2018 reported a mystery-shopping exercise conducted in the second and third quarters of 2017. Researchers checked 160 e-commerce websites in eight EU member states across airline tickets, hotel rooms, sports shoes, and televisions. They found personalized ranking at 61% of the sites visited. In comparisons of identical products, prices differed between personalized and non-personalized scenarios in 6% of situations, with a median difference under 1.6%. The study did not find consistent, systematic personalized pricing in the markets and countries it covered.

Ranking varied by sector in that same 2017 exercise: it was found at 92% of airline-ticket websites, 76% of hotel-room websites, 41% of sports-shoe websites, and 36% of TV websites. These figures concern personalized ranking, not the share of sites that set individualized prices. The Commission cautioned that sophisticated, changing algorithms make mystery shopping difficult. The results are historical and limited to the countries, sectors, and period studied; they are not a current estimate for all online shopping. See the European Commission study.

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A 2021 OECD paper reported a laboratory experiment in Ireland and Chile. Disclosure had limited effects on participants’ ability to identify and understand personalized pricing, and the experiment did not confirm a significant effect on purchasing behavior. Respondents, on average, considered the practice unfair and thought it should be prohibited. This experiment did not measure how often retailers personalize prices or establish real-world price changes. Read the OECD paper.

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Neither these studies nor the FTC findings provide a current, representative statistic for how many US retailers personalize prices or how often an individual pays more because of personal data. The FTC’s intermediary findings show that the capability exists; they do not establish its prevalence among retailers or its effect on a particular shopper.

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Why the same item may cost less on another phone

A price difference is a useful reason to check the details, but it is not enough to identify the cause. The two screens may differ in seller, stock availability, quantity, shipping, taxes, location, promotion, purchase channel, or timing. Search results may also rank different sellers or offers. A personal profile is one possible explanation, not the only one.

To make a fair comparison, match the exact item, seller, quantity, shipping destination, purchase conditions, and approximate time. Check the final checkout total, not just the price shown in a search result or product listing. If a price still differs, you can document the conditions and ask the retailer how the offer was determined, but a simple comparison cannot prove that personal data caused the difference.

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

They may change some signals, but neither guarantees a lower or more uniform offer. Private browsing can limit locally saved browsing history; it does not make you anonymous to a retailer when you sign in. A VPN changes the apparent network location, but cannot by itself remove your account history, loyalty-program data, device signals, or information the retailer already holds. The FTC has described these measures as possible consumer steps, not as proven ways to secure a discount. See the FTC’s announcement.

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What the FTC’s latest stated position means

In an August 2026 announcement, the FTC described a draft enforcement policy statement and invited public comment. The agency said it does not have authority to ban personalized pricing in every circumstance, while warning that undisclosed collection or use of personal data to set prices could violate laws it enforces, including the FTC Act. The announcement listed September 18, 2026, as the comment deadline. It described a proposal, not a final rule. Because that deadline has passed, the announcement alone does not establish what the FTC’s current policy is or what action followed; check the agency’s current materials before relying on a later status.

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