Extracting the maximum possible surplus by using personalised data should not be legal
The increasing sophistication of data collection and AI-driven analytics is pushing the boundaries of personalized pricing, making its predatory potential more evident and widespread.
This issue highlights a fundamental tension between technological capability and ethical considerations, directly impacting consumer welfare and regulatory frameworks globally.
The debate is shifting from whether personalized data can be used for pricing to whether it should be legally permissible, indicating a growing call for legislative intervention.
- · Consumers with strong data privacy rights
- · Regulators enforcing fair pricing laws
- · Companies using aggressive personalized pricing strategies
- · Data brokers profiting from granular consumer profiles
Increased public and regulatory scrutiny on data collection practices and algorithmic pricing models.
Potential for new data privacy legislation to specifically address and limit 'surveillance pricing'.
A shift in business models for consumer-facing companies toward more transparent and less data-exploitative pricing strategies, or the emergence of 'privacy-preserving' commerce platforms.
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Read at Financial Times — Technology