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Clear policy or moving target?
Why disclosures are key to protecting informed consumer choice and competition.
| Laura Smith
Online platforms are increasingly using algorithms powered by AI and other emerging technologies to advertise personalized prices. These algorithms are capable of tapping into consumers’ personal data, such as their precise location, private browsing history and even their mouse movements on a webpage, to predict what a specific consumer is willing to pay – and then advertise that price to them.
As a result, different consumers may see different prices for the same product.
On Monday, TINA.org joined with a coalition of consumer law advocates and consumer groups in filing a comment urging the FTC to take steps toward transparency regarding the use of algorithmic pricing. The comment, filed in support of a citizen petition, calls on the FTC to pursue and adopt a rule that would require companies to disclose to consumers when AI has been used to set prices or profile consumers online.
“A rule that calls for clear disclosure when using these models would materially help preserve consumers’ ability to make informed decisions,” TINA.org and its partners, which include the Center for Consumer Law and Economic Justice, the National Consumers League and several law school consumer justice organizations, wrote, noting, “Many consumers do not even know that their information is being collected, or that the information can be used to raise prices.”
The comment points to bipartisan concern, state and federal scrutiny, and real-world examples across industries ranging from retail to housing to transportation. It argues that clear disclosure rules would serve multiple purposes: helping protect consumers, leveling the playing field for businesses, and maintaining trust in digital markets while allowing responsible innovation to continue.
A consumer-driven push for change
Notably, this effort began with a single consumer raising concerns about transparency as AI becomes embedded in the online marketplace. While time will tell whether the citizen petition leads to new regulation, we applaud the initiative and encourage consumers to speak up and file petitions with the FTC and other government agencies so that their voices can be heard.
Stay tuned for updates.
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