Algorithms find what you'll pay while hiding how they work
Supermarket loyalty programs could help businesses predict what individual customers will pay and workers will accept.
The Federal Trade Commission is looking at rules for algorithmic pricing. Consumer NZ warns that loyalty program data could show what individual customers will pay.
Ride-sharing platforms like Uber and Lyft already use dynamic pricing. They watch which rides drivers accept.
They also track when drivers work. The core problem is simple.
Firms see your financial breaking point. But you cannot see how their systems work.
A retailer can give discounts to price-aware customers. But they hold back discounts from others.
Experts argue people should know when offers are made just for them. They should know if others get different deals.
- Federal Trade Commission
- Regulator
- Uber and Lyft
- Platforms using dynamic pricing
Why it mattersCompanies could use this advantage to raise prices for those ready to pay more. They could also cut wages where workers have fewer job options.
AustraliaAustralian supermarkets collect loyalty data; stronger privacy and transparency laws could prevent the algorithmic pricing problems emerging elsewhere.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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