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Price Realism Requirement Is Easily Triggered

Client Alert | 1 min read | 05.20.13

In Esegur-Empresa de Segurança, SA (April 26, 2013), GAO held that the solicitation statement that "unrealistically . . . low . . . prices may serve as a basis for rejection of the proposal" alone created a presumption that the agency would in fact conduct a price realism evaluation of whether proposed prices are too low, even though the solicitation did not say such an evaluation would be conducted, and the agency's failure to do so therefore required that the protest of the awardee's low price award must be sustained. If agencies prophylactically include such language warning against "too low" prices in "low cost technically acceptable" solicitations, disappointed offerors may have a ready-made protest if no realism analysis is performed, but, if agencies do not include such language, they may be required to award to high risk offerors who do not understand the requirements.


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Client Alert | 5 min read | 08.21.26

FTC Proposes Enforcement Policy Statement on Personalized Pricing: What Businesses Need to Know

On August 19, 2026, the Federal Trade Commission (FTC) announced a proposed Enforcement Policy Statement on personalized pricing — the practice of companies using consumers’ personal data to set individualized prices, discounts, coupons, or other incentives. The proposed statement, which is open for public comment for 30 days following publication in the Federal Register, marks a major step up in the FTC’s focus on data-driven pricing strategies and puts businesses across industries on notice that undisclosed or inadequately disclosed personalized pricing will not be tolerated. Importantly, while the proposed statement is not a binding legal requirement and does not create new legal obligations, it serves as an enforcement warning that the FTC is prepared to use its existing enforcement authority under Section 5 of the FTC Act (Section 5) and is also a potential harbinger of rulemaking. Businesses that engage in — or are considering — personalized pricing should carefully assess their disclosure practices and data collection procedures against the standards articulated in this statement....

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