How to secure the confidentiality of your pricing strategy by ensuring the lawfulness attribution of your pricing algorithms? What if your Analytics tool for “Pricing” is no more “confidential, containing business or commercial know-how”? Would you rather be confident with disclosing the pricing algorithm?
Pricing tools running Artificial Intelligence and Analytics take into account the behaviour analysis of the users to better predict the willingness to pay tolerance of each user and adjust the instant price offering in accordance with that tolerance. Obtained user consent for personal data collecting and processing is unlikely to provide the legitimacy allowing the companies to run ad-hoc pricing algorithms. This is because; when the company runs an ad-hoc pricing algorithm to produce a personal price offer to the user by looking at the willingness to pay indicators of the user, at this very moment, the actual utilization of the consented data does not align with the explicitly expressed purpose on the consent statement. Here is a clear deficit between the purposes at the time of consent and at the time of use. In such a case, it is better to examine the possible breach of GDPR with the dimension of the “purpose” approach.
Getting consent from the users doesn’t mean that the company can do whatever he wants with that set of personal data. But, how serious is it?
21 January 2019, France’s Commission Nationale de l’Informatique et des Libertés (CNIL) delivered some disheartening news recently when it levied against Google a sanction of $57 million to penalise it for not properly disclosing to users how data is collected across its services — including its search engine, Google Maps and YouTube — to present personalized advertisements. Despite the importance of consent boxes to click, the purpose of the consent is a mainstream issue to handle. The compliance with contractual obligations is not enough for legitimisation and lawfulness. The coherency between the consent statement and the ad-hoc purpose of the price generating tools (using Analytics, Artificial Intelligence, etc.) is subject to verification as well.
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