The OECD holds a roundtable on personalised pricing in the digital era

As data analytics and pricing algorithms become common business practice in the digital era, there are growing concerns about the possibility that companies use such tools to engage in personalised pricing, a form of price discrimination that involves charging different prices to consumers according to their willingness to pay. While personalised pricing has the potential to improve allocative efficiency and benefit low-end consumers who would otherwise be underserved, in some occasions it can also lead to a loss in total consumer welfare. Moreover, if these practices are conducted using non-transparent or deceptive means, there is also a risk that they reduce market trust and create a perception of unfairness, potentially dampening consumer participation in digital markets. In November 2018, the OECD Consumer Protection and Competition committees jointly discussed the ambiguous and multi-dimensional effects of personalised pricing, notably whether the risks of personalised pricing deserve a policy intervention and, if so, what are the most appropriate competition and consumer protection tools to address them.

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  • OECD - Competition Division (Paris)

Quotation

OECD, The OECD holds a roundtable on personalised pricing in the digital era, 28 November 2018, e-Competitions November 2018, Art. N° 92475

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