The Federal Trade Commission has issued a new enforcement bulletin warning retailers that using private consumer data to set personalized prices could violate consumer-protection laws. In a statement released Wednesday, the agency said businesses must disclose when they use highly detailed personal information to personalize price offers.

Merchants have become increasingly sophisticated at leveraging consumers' online shopping habits and smartphone usage data to calculate individual tolerance for higher prices. The FTC emphasized that companies must provide "clear and conspicuous" disclosure of any personalized pricing, including the type of data used to generate the offer.

While the agency lacks authority to outright prohibit the practice, it stated it will deploy enforcement resources against companies that fail to meet disclosure standards. This move represents the Trump administration's approach to regulating algorithmic price-setting.

Businesses have historically set different prices for distinct consumer groups based on willingness to pay. Common examples include offering lower prices to college students and senior citizens for subscriptions or mobile-phone contracts. The new guidance specifically targets personalized pricing based on detailed individual data collection.