Companies take into account their location, navigation history, age, battery state on mobile phone and even rat movements to make a personalized price based on these factors.
“I do this price, but it’s just because it’s for you!” Indeed, the prices we find today on the internet can be made just for you. But it is not exactly discounted, as I could think. On the contrary.
The phenomenon of personalized pricing or surveillance pricing It was recently exposed on January of the Federal Trade Commission (FTC), the US consumer protection entity, which warns that companies collect a variety of consumer data. Let’s go to examples.
When you enter an online store, companies can know how long it is on the page, what products leaves in the cart and how long it takes a purchase. The report warns that Product prices you are looking for can rise if the system “perceives” that it needs it urgently or if it is a usual consumer.
This “trick” is made using Artificial Intelligence (IA), if we look at a study of the, quoted on Wednesday by, which concluded that 40% of the companies that resort to AI to customize the consumer experience, applying technology specifically to prices and promotions. But how do you do it? And what is the criterion?
These issues motivated official investigations and various consumer complaints, which constantly notice price variation. One of the most striking cases is the price of airplane tickets. There are even those who say that buying a plane trip on a certain day of the week is much cheaper.
A location User is one of the factors to take into account. For example, Target, one of the largest retail chains in the world, was “selling a television at its online store for $ 499. In physical stores, the same TV cost $ 599, the site said. The algorithm assumed that anyone who had already moved to the scene or was nearby was determined to complete the purchase and, therefore, would be willing to pay more. The case ended in court and the company was forced to compensate customers at $ 5 million.
But there are other factors that don’t even go through the consumer’s minds, like the historic browser navigation, the ageo Battery condition on mobile phone and even Mouse movements.
Meeting applications, such as Tether and Tinder, were accused of charging middle-aged users more, increasing the price of premium services for those between 30 and 49 years.
In transport, Uber and Lyft showed price differences between two identical requests made simultaneously. Why? One of the mobile phones was almost without battery, concluded the
And if you have a MacBook, get ready: Travel websites have been caught to redirect Apple computer users for more expensive hotel options, based on the history that these customers spent on average per night.
The study is based on the analysis of documents obtained through orders sent to various companies, explains the FTC, and focuses on intermediates working with retailers, capable of adjusting algorithically prices and promotions.
