Following formal comments requesting a more narrow approach, FTC issues new inquiry seeking more information on personalized pricing, targeting non-franchised businesses

WASHINGTON – The International Franchise Association (IFA) today applauded the Federal Trade Commission’s (FTC) narrower approach on personalized pricing, which seeks pricing and compensation information, rather than the broad proposal issued in August. In September, IFA raised concerns that the original proposal was overly broad based and could have included industries across the franchise business model for common discount practices or loyalty pricing programs.

“Personalized pricing is a standard part of business practices that has been around for decades,” said Matt Haller, IFA President and CEO. “While the technology has changed, the concept has not. Businesses across industries offer customers discounts, rewards, or loyalty programs to support their regulars or bring more people in the door – a practice the customer often benefits from. Further, it is standard in franchised businesses for franchisors to provide data and insights to their franchisees to help them run their businesses successfully. IFA is glad to see the FTC narrow its approach to focus on practices that could actually be harmful to customers, rather than put forth a broad rule that could sweep in ordinary loyalty and discount programs, ultimately harming the consumer and small business owner alike.”

The new inquiry reflects concerns raised in IFA’s recent comments on the August proposal, urging the FTC to withdraw the proposal to take the time to understand how personalized pricing is used before writing new rules.

IFA President and CEO Matt Haller also addressed personalized pricing in a new Substack available here.

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About the International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 832,000 franchise establishments that support nearly 8.8 million direct jobs, $907.3 billion of economic output for the U.S. economy, and almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.