Dynamic AI pricing: when is it forbidden?
AI-driven pricing is not prohibited, but it becomes so if it exploits vulnerable groups or manipulates people subconsciously. Personalised prices must also be disclosed (consumer law).
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? If customers get a personalised price based on automated decision-making, consumer law requires you to disclose this with the offer (Directive 2011/83/EU, Art. 6(1)(ea)). Prices that only follow demand or competitors are not covered. Always avoid fake urgency and exploiting vulnerable customers.
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