Spanish consumer affairs ministry is once again taking on harmful practices by online companies. Minister Pablo Bustinduy recently announced a regulation that targets the algorithms which are used to personalise products and alter their prices.
The ministry will force companies to disclose the methods they use to determine changes in prices. The ministry will also prohibit the use of urgency to manipulate customers, for example. Companies will not be allowed automatically to change prices or to warn customers of a price increase in order to encourage them to buy more quickly out of fear and uncertainty. The ban also denounces the use of profile and identity discrimination to determine a price.
Companies that violate these regulations will be punished with fines for violating consumer rights.
What does this new regulation mean for consumers
Bustinduy has announced a new regulation, but there is still no date for its approval. This means that the prices won’t be determined by random business decisions.
The minister cited the example of renting cars online where the prices are dynamic and change depending on when the site is viewed. In this case, it will be the responsibility of the company to inform the customer how the prices are calculated. This could include the factors of distance, time, frequency or demand. The company is also prohibited from determining the price based on discriminatory factors, such as the physical condition of the customer or their race.