22.01.2025 18:01
According to a new report published by the U.S. Federal Trade Commission (FTC), consumers' personal data in online shopping is being used not only for advertising but also for determining prices.
In addition to security risks in online shopping, a new threat has emerged. It has been determined that prices in online commerce are set according to the individual.
PERSONAL DATA IS USED IN PRICING
This practice, referred to as "surveillance pricing," analyzes data such as users' browsing history, location information, and even mouse movements, leading to different prices being offered to different consumers for the same product.
RETAILERS' ALGORITHMIC PRICE ADJUSTMENTS
According to a report by the U.S. Federal Trade Commission (FTC), retailers are algorithmically adjusting and targeting their prices in collaboration with "intermediary firms." This system allows the price of a product to become a variable dependent on the consumer rather than a fixed attribute.
CONSUMER DATA USED IN PRICING
The report states that the price or promotion of a product can vary based on various inputs such as consumer-related data, behaviors, preferences, location, shopping time, and the channel used. For example, a consumer profiled as a new parent may see the more expensive baby thermometers at the top of search results. Additionally, it is noted in the report that cosmetic companies may offer different promotions based on detailed consumer data such as skin type and tone.
UNFAIR COMPETITION IS ALSO ON THE AGENDA
Former FTC Chair Lina M. Khan stated, "The FTC should continue to investigate surveillance pricing practices because Americans have the right to know how their private data is being used to determine the prices they pay and whether companies are charging different prices to different people for the same goods or services." The FTC is also seeking comments from the business community regarding consumer experiences related to surveillance pricing and whether these tools provide unfair advantages to competitors. There is no information available on whether the same system is being implemented in Turkey.