Market Watchdog Calls for Transparency on AI in Price Setting - DutchNews.nl
The ACM said some airline seats had 35 prices and one-third cost 40% above average, as companies use AI to set rates.
- The ACM called on companies to increase transparency regarding AI-driven ticket pricing after an investigation revealed significant discrepancies in amounts charged for airline tickets.
- Investigation findings showed airline seats had 35 different prices, with one-third of tickets costing 40% more than the average, leaving passengers unable to easily identify the cheapest fare.
- Sometimes two people viewing the same product simultaneously are charged different prices, while consumers spend longer searching for deals due to dynamic pricing systems based on supply and demand.
- ACM chairman Martijn Snoep told NOS, "We expect that, because of AI and the availability of data, companies will use computer-controlled prices more frequently, including personalized prices."
- Snoep noted "similar techniques are being applied in other sectors," as online retailers, concert ticket sites, and petrol stations increasingly utilize AI to set Commercial prices.
13 Articles
13 Articles
Those on the same plane have by no means always paid the same amount. On a single flight, 1 in 3 airline tickets costs 40 percent or more above the average ticket price. On average, 30 to 35 different prices are charged for a seat on the same flight. This is evident from research by the Autorit...
Algemeen Dagblad
Anyone wishing to take a plane may pay tens to hundreds of euros more for a seat than the average ticket price. This is the result of dynamic pricing, according to a study by the Authority for Consumers & Markets (ACM). The regulator is sounding the alarm about opaque ‘pricing algorithms’.
One flight, 35 different prices: Consumers are unclear how computers set costs
Many consumers are unclear on how computer-controlled prices for a range of products and services are set, according to a new study of airplane tickets by the Netherlands Authority for Consumers and Markets (ACM). A growing number of businesses now reportedly use such a computer-controlled pricing system, which sets the costs based on figures such as competitors’ prices, supply, and demand.
Reformatorisch Dagblad
Companies must provide more clarity on how online prices are determined. This is the opinion of the Netherlands Authority for Consumers and Markets (ACM). It is often unclear to consumers how prices at online stores, events, and airlines are determined. According to the regulator, this leads to misconceptions about how prices are established and damages consumer confidence.
Consumers now often receive a different price for the same product at the same time.
Coverage Details
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
