Dynamic AI pricing: when is it forbidden?
AI-driven pricing is not banned, but it becomes so when it exploits vulnerable groups or manipulates people unconsciously. Transparency about how prices are formed is always required.
Dynamic pricing through AI is not in itself prohibited. But the AI Act draws two red lines: (1) no exploitation of vulnerable groups and (2) no subliminal manipulation.
Exploitation means: deliberately showing higher prices to people in a vulnerable position. For example: higher prices for elderly people who do less price comparison, or urgency pricing aimed at people in debt.
Subliminal manipulation: AI that adapts the presentation of prices so that you spend more without realising it. Think of showing an 'almost sold out' label when that's not true.
What should you do? Be transparent that prices are determined algorithmically. Mention this in your terms and consider a disclaimer next to products with dynamic pricing.
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