ACCC warns of AI surveillance pricing and shopping bots

Summarised from 2 outlets · Updated 16 Oct, 18:02 · Archive

Australia's competition regulator warned a parliamentary inquiry that artificial intelligence is enabling discriminatory pricing and shopping bots that may collude against consumers.

Australia's competition regulator has warned a parliamentary inquiry of emerging risks from artificial intelligence in retail, including discriminatory pricing and shopping bots that may collude against consumers' interests.

The Australian Competition and Consumer Commission told hearings in Canberra on Friday that companies are using AI surveillance to charge different prices to different shoppers, particularly those identified as vulnerable. David Abkiewicz, the ACCC's digital markets general manager, said: 'There are positives and negatives to personalised pricing, but the real harm that can come about is where that pricing gets extremely granular. That could potentially establish their willingness to pay completely, or potentially on the basis of personalised data that might indicate vulnerable consumers.' He noted that giving different prices to certain groups is not against Australian consumer law, although restrictions on surveillance pricing are emerging in other jurisdictions including the United States.

The watchdog also warned about 'agentic shopping', where consumers deploy bots to shop on their behalf. Consumer protectors fear these agents have in-built brand preferences and are colluding to steer shoppers away from genuine best deals. Mr Abkiewicz said the watchdog was 'considering what that looks like and making sure those agents are working in the interest of consumers themselves'.

The ACCC highlighted additional concerns about artificial intelligence making online scammers more convincing and reducing barriers to entry for scam operators. The watchdog said there is no easy avenue currently available to pursue companies that use bespoke pricing and surveillance to prey on vulnerable customers.

How it is being reported

• AI surveillance, conspiring bots on watchdog's radarShoppers have been warned of discriminatory pricing, more convincing scammers and putting their faith in a bot to find them the best deal as AI marches on.The West Australian · 16 Oct, 17:34
• AI surveillance, conspiring bots on watchdog's radarShoppers have been warned of discriminatory pricing, more convincing scammers and putting their faith in a bot to find them the best deal as AI marches on.Perth Now · 16 Oct, 17:34

In this story: Australian Competition and Consumer Commission · David Abkiewicz · Canberra · Australia · United States

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