California Lawmakers Combat AI-Driven Price Discrimination
California lawmakers are actively working to combat the growing issue of AI-driven price discrimination, a practice where artificial intelligence is used to dynamically adjust prices based on a user's perceived willingness to pay. This practice, often referred to as surveillance pricing, has raised concerns about fairness and transparency in online transactions.
The proposed legislation aims to prevent companies from using AI algorithms to unfairly target and overcharge consumers. By setting new standards for transparency and fairness in pricing, California hopes to lead the way in protecting consumers from these sophisticated pricing strategies.
The Markup reported that this initiative comes in response to increasing evidence that AI systems can manipulate prices in ways that disadvantage certain groups of consumers. CalMatters highlighted that the bill would require businesses to disclose when they use AI for pricing decisions, ensuring that consumers are aware of how their data influences the prices they see.
Raconteur's analysis on surveillance pricing further emphasized the need for regulatory action, pointing out that without intervention, such practices could deepen economic inequality. East County Magazine noted that California's effort is part of a broader movement to regulate the use of AI in commerce, with other states and countries beginning to consider similar measures.
Detailed
Latest
Can you Like
