The Algorithmic Pricing Disclosure Act recently enforced in New York mandates that businesses disclose when they set prices using customer data through algorithms. Consumers may face varied prices based not only on location but also on their online behavior, with potential violations resulting in fines. Companies must now display a notice indicating that a price was influenced by algorithms using personal data, encouraging public reporting of such practices to strengthen enforcement.
The Federal Trade Commission (FTC) had earlier warned about these pricing practices, issuing a report that involved several large companies. The report highlighted potential exploitations, such as charging higher prices for products based on inferred consumer characteristics and behaviors—leading to concerns about discrimination and fairness in pricing strategies. As these practices have evolved, states like California have also started to legislate against them, seeking to protect consumers further.
👉 Pročitaj original: Malware Bytes
