FTC Probes Delta's AI Pricing Methods

The U.S. Federal Trade Commission has ordered Delta Air Lines, Walmart, and other corporations to submit detailed records explaining how they use consumer data for pricing. The inquiry specifically targets the role of artificial intelligence in determining the cost of goods and services for individual customers. Delta has stated it will comply with the request, although the airline has previously maintained that it does not use personal data in its pricing structure.

A Delta spokesman told the commission that the airline has never used, is currently testing, or plans to use a fare product that targets customers with individualized offers based on personal data. The company issued this same statement multiple times during the summer as public concern grew over its AI pricing algorithm. The FTC is now seeking to verify these claims through a formal review of the airline's internal processes and data usage.

Suspicion toward Delta's practices increased after the company began experimenting with AI pricing models more than a year ago. This summer, a group of Democratic senators sent a letter to the airline questioning whether it was using AI to charge different prices to different people based on personal information. The senators pointed to previous comments made by Delta leadership as evidence that such a system might be in development.

Glen Hauenstein, who served as Delta's president during 2024 and 2025, made several remarks that drew attention to the potential of the technology. At the airline's 2024 Investor Day, he described the goal of the model as delivering the right offer to the right customer at the right time. In 2025, during an investor conference, he reportedly said the technology could help determine the amount people are willing to pay for premium products related to base fares.

The FTC's order is part of a wider regulatory look at how large companies handle consumer information. The commission wants to understand if algorithms are being used to create different prices for similar products based on a customer's browsing history or purchase history. Delta is not the only company under scrutiny, as the request for information also extends to major retail players like Walmart.

The airline has been experimenting with these AI models for over a year, but it has publicly insisted that the technology does not rely on personal data. The senators who questioned the practice cited Hauenstein's remarks to argue that the company's public stance may not reflect its internal testing. The FTC's investigation will now examine the specific data points Delta uses when its algorithms generate prices for passengers.

This development follows a period of intense public debate over the use of AI in commerce. Consumers have expressed concern that algorithms might charge them more for flights or goods if the system predicts they are willing to pay a higher price. Delta has denied this practice, but the FTC's order requires the company to provide concrete evidence of how its pricing engine operates. The outcome of the inquiry could set a precedent for how other airlines and retailers explain their AI-driven pricing models.