Document Type
Article
Abstract
In debates over new information technologies, it is sometimes argued that an important reason to protect privacy is the possibility that personal information may be used to subject shoppers to price discrimination based on their identity, traits, or habits. Although this argument appears in numerous places, it has heretofore received little comprehensive treatment. This Article seeks to explore the legal and ethical principles implicated in the use of personal information for retail pricing. It strives to articulate the case for regulating the information flows between sellers and buyers because of the effects that information might have on the prices that consumers will encounter in the marketplace.
This Article takes its cue from Helen Nissenbaum’s theory of Contextual Integrity, which sees the flow of information as governed by the norms belonging to distinct social contexts, and by the theories that conceive of information privacy as implicating several distinct human interests. Under this view of privacy, it is apt to look closely at the specific concerns of consumers over information practices in the context of retail markets—such as the desire to receive better prices and better products, being treated fairly, and the just allocation of goods through the markets—without delving into a broader discussion of privacy in the abstract.
Attention will be given to “informational remedies”—the approaches the law and policy can take in order to remedy informational harms. Choosing the right solution entails difficult choices, such as deciding if it is appropriate to restrict seller’s ability to collect certain kinds of information, prohibit specific sales practices, or whether to compel the seller to disclose information about its sales practices, instead of restricting the seller’s ability to engage in those practices altogether. Before reaching the right solutions, however, the problems must be clearly understood.
Recommended Citation
Akiva A. Miller,
What Do We Worry About When We Worry About Price Discrimination? The Law and Ethics of Using Personal Information for Pricing,
19 J. Tech. L. & Pol'y
(2014).
Available at: https://scholarship.law.ufl.edu/jtlp/vol19/iss1/2