Hidden price discrimination.
-----------------------------
ONLINE PRICING BASED ON USER'S SHOPPING
The Annenburg Public Policy Center has released a study entitled, "Open to
Exploitation," which concludes that most Americans have no idea that
Internet merchants often charge different prices to different consumers
for the same products. According to the study, nearly two-thirds of adult
Internet users incorrectly believe it is illegal to charge different
people different prices, a practice retailers call "price customization."
The Web lets shoppers easily compare prices, but it also enables
businesses to collect detailed records on a customer's behavior and
preferences and set prices accordingly. Doing so is generally lawful
unless it discriminates against race or gender or violates antitrust or
price-fixing laws. First-time buyers at a retailer might see higher prices
than a repeat customer. However, retailers may not offer discounts to
repeat shoppers who buy the same brands regularly without even looking at
alternatives on the site. A copy of the report may be found at
http://www.annenbergpublicpolicycenter.org/04_info_society/Turow_APPC_Report_WEB_FINAL.pdf
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