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Online platforms suspected of overcharging regular users based on big data

(People's Daily Online)    17:57, March 30, 2018

Many operators are falling under blame for overcharging their regular customers supported by big data collected from users’ daily life.

A customer recently shared his experience online that he hailed a car by the car-hailing service provider Didi Chuxing, while he found that the price he had been quoted for the same route varies from different customers.

Many Internet users also shared their experiences online, complaining that operators were often offering the same product or service at different prices to their customers. The prices vary not only between regular and new users, but also between Apple and Android users.

The phenomenon also occurs when customers are engaged in online shopping, online hotel booking and online ticketing. Some operators often deny such practices, and some admit to engaging in such activities indirectly.

Setting different prices for different consumers is possible technically for the internet enterprises supported by big data, as the platforms are able to obtain users’ personal information and behavioral habits, said Wang Wei, associate professor at the School of Computer and Information Technology of Beijing Jiaotong University.

From the perspective of market economics, it is normal to adopt price discrimination for consumers with different spending power. However, raising the prices for identical products or services at the same time for consumers in the dark is considered as an example of consumer rights and interest violation.

Cao Lei, director at China Electronic Commerce Research Center noted that the operators are playing an “edge ball” game, because theoretically, both operators and e-commerce platforms have the right to set different prices for the same product.

Also, some experts say the practice of the operators is suspected of getting out of line.

Although operators are able to determine prices for products according to market supply and demand, they are not allowed to intentionally raise prices using big data technology on consumers who do not know the real prices, Chen Yinjiang, an expert specializing in the Law on protection of consumers’ rights stressed, claiming that the practice is suspected of cheating consumers.

About 63.4 percent of respondents regard the phenomenon as prevailing, and 51.3 percent say they have had such kinds of experience being cheated by such online platforms, according to a poll conducted by China Youth Daily.

The poll also indicates that 59.1 percent of the respondents expect relevant departments to strengthen control of the discriminatory pricing practices of the operators.

Experts are calling for the establishment of corresponding channels or mechanisms for complaints from consumers facing unreasonable price change for products or services to be reportable. On the other hand, the platforms are suggesting offering consumers price variations in certain periods for reference. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Bianji, Hongyu)

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