Discrimination grounds and personalised pricing: Consumer perceptions of fairness, norm alignment, legality, and trust in markets

This article explores consumer perceptions of different grounds by which online prices can be personalised. We conducted a survey among Dutch consumers (n = 727) presenting them with 25 segmentation bases, drawing from legally permissible and legally prohibited grounds. We then ranked these bases and accompanying consumer perceptions across five dimensions: fairness, alignment with personal norms, alignment with social norms, perceived legality, and trust in markets. We find that while consumer perceptions generally align with what is currently prohibited in law, there are some “new” grounds, in particular intelligence and physical appearance, that elicit similar negative perceptions as legally prohibited grounds. This raises questions regarding the further regulation of personalised pricing. We discuss pros and cons of updating legislation to better reflect (new) ethical and social norms.

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Publication Details

Journal
Internet Policy Review
Published
2024-10-18
DOI
https://doi.org/10.14763/2024.4.1809
Citations
2
Primary Topic
Economic Theory and Institutions
Type
article
Field-Weighted Citation Impact
2.26
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article

Discrimination grounds and personalised pricing: Consumer perceptions of fairness, norm alignment, legality, and trust in markets

Bart Custers, Kimia Heidary, Jean‐Pierre van der Rest
2 citations
Internet Policy Review
Economic Theory and Institutions
2.26
article

Discrimination grounds and personalised pricing: Consumer perceptions of fairness, norm alignment, legality, and trust in markets

Bart Custers, Kimia Heidary, Jean‐Pierre van der Rest
article en
2 citations

Abstract

This article explores consumer perceptions of different grounds by which online prices can be personalised. We conducted a survey among Dutch consumers (n = 727) presenting them with 25 segmentation bases, drawing from legally permissible and legally prohibited grounds. We then ranked these bases and accompanying consumer perceptions across five dimensions: fairness, alignment with personal norms, alignment with social norms, perceived legality, and trust in markets. We find that while consumer perceptions generally align with what is currently prohibited in law, there are some “new” grounds, in particular intelligence and physical appearance, that elicit similar negative perceptions as legally prohibited grounds. This raises questions regarding the further regulation of personalised pricing. We discuss pros and cons of updating legislation to better reflect (new) ethical and social norms.

Internet Policy ReviewVol. 13(4)
Leiden University (NL), University of Applied Sciences Leiden (NL)
Peace, Justice and strong institutions, Reduced inequalities
Openalex Percentile: Top 8%
Economic Theory and Institutions
2.26
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