What marketers should know about the legal risks of algorithmic pricing
Advertised prices affect consumer purchases, so sales and discounts are part of every marketing tool kit. When an algorithm sets that price differently for different customers, the representation can create legal exposure — not just under new algorithmic pricing restrictions, but under false-advertising laws, too.
Algorithmic pricing allows marketers to charge different people different prices for the same products or services; it uses software to set prices automatically, based on data ranging from demand and inventory to personal signals such as browsing history, location, or loyalty status. For marketers and advertisers, individualized pricing is the holy grail of price-points — the right number, at the exact moment, to convert someone just browsing into a purchaser. For regulators, however, it raises concerns about privacy, transparency, fairness, and pricing power.
What marketers should know about the legal risks of algorithmic pricing | Marketing Dive