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Watchdog probes data link to prices
An inquiry is being launched into the use of personal data to set individual prices for holidays, cars and household goods.
The move by the Government comes amid fears shoppers are being ripped off.
The research, supported by the Competition and Markets Authority (CMA), will explore the prevalence of “dynamic pricing” based on personal information such as location, marital status, birthday or travel history.
With about 17% of retail sales now made online there is rising concern about the use of technology, including artificial intelligence and bots, to “personalise” prices.
It has become common for online prices to fluctuate depending on time of day or availability.
The chancellor, Philip Hammond, has asked a panel of experts to examine competition in the digital economy, including how machine learning and algorithms are used to set prices and whether firms could gang up to disadvantage consumers.
Andrea Coscelli, the CMA’s chief executive, said: “It’s important we understand how advances in technology impact consumers, so we can understand how best to protect people from unfair practices.
“We will also use the results in our ongoing efforts to help vulnerable consumers.”
Business secretary Greg Clark said: “UK businesses are leading the way in harnessing new technologies.
“But companies should not abuse this technology and data to treat consumers, particularly vulnerable ones, unfairly.”