WHAT MARKETERS SHOULD KNOW ABOUT THE LEGAL RISKS OF ALGORITHMIC PRICING

Summary from the TLDR Marketing newsletter

Dynamic pricing, where every customer sees the same demand-driven price, is relatively safe, but pricing that changes based on the shopper carries much greater legal risk. A promo code sent to one segment or a retargeted offer that undercuts the public price can count as personalized pricing. Dozens of bills are pending across more than 20 states, and the FTC has drafted a policy statement on when the practice is misleading or unfair. False-advertising laws also apply, since a sale price only some shoppers see may misrepresent the discount.