Harm the interests of consumers and is not conducive to the healthy development of the industry.


Big data must be punished heavily!

(Online China)

  The price of the same room type is different, but the taxi ride on the same route is much higher than others. The takeaway food in the same store is always more expensive than others...In recent years, the platform economy has developed rapidly, and big data provides consumers with more personalized products and service.

At the same time, it is not uncommon for network platforms to use big data to "kill familiarity".

A few days ago, the China Consumers Association held a symposium on algorithm regulation and consumer protection in the field of online consumption, and pointed out that some Internet platforms use algorithm technology to "kill" big data and damage the legitimate rights and interests of consumers. Effective regulation of algorithm application must be strengthened.

  There are so many routines that users can't guard against

  "Master, can you go straight?" A few days ago, Beijing citizen Zhao Wenjun took a taxi from Hujialou in Chaoyang District to Ganjiakou North Street in Haidian District.

I opened the mobile phone navigation software and found the problem: the vehicle was driving smoothly and the straight line was not congested, but the navigation on the car showed that it was going to detour. He hurriedly asked the driver to switch the line.

  As a "heavy user" of taxi-hailing software, Zhao Wenjun did not become the prey of the algorithm "dark arrow" this time.

However, some consumers are not so lucky.

Some users shared their experience of being "cut leek": "My wife and I took a taxi at the same time and initiated at the same time. With the same starting and ending points, my price will be more expensive every time because I use this route every day. My wife is I fight occasionally."

  Not only transportation, but with the rapid development of platform economy, there are more or less big data "killing" phenomena in online shopping, travel accommodation, electronic ticketing, ordering food delivery and other consumer areas.

The so-called "killing familiarity" means that for the same goods or services, the prices seen by old customers are much more expensive than new customers.

There are consumers who are obviously platform members, but the prices of their products are higher than those of ordinary users.

  There are more hidden tricks to "kill familiar" with big data.

According to consumer complaints, the China Consumers Association has sorted out other types of algorithmic price discrimination, such as setting different prices based on consumers’ locations and page views.

  Some programmers explained the "mystery": If you usually spend more time browsing clothing and pet supplies, users will be more familiar with the price range of these products, and the platform tends to recommend cost-effective products.

Conversely, when users start to browse products that they don’t usually look at and the browsing time is not long, then the algorithm will tend to recommend higher-priced products.

  Experts point out that because different consumers have different price sensitivity, there are also differences in willingness to pay.

Therefore, compared with the implementation of uniform pricing for "equal treatment", differentiated pricing behavior can also meet the needs of merchants to increase new purchases, increase repurchase rates, and increase profits.

However, for ordinary users with limited time and energy, it can be described as full of routines and hard to guard against.

  Rights protection is difficult, unhealthy trends must be stopped

  The "Internet Platform Competition and Monopoly Observation Report" released in December 2020 shows that consumers have strongly reacted to the issue of "big data killing", believing that this action is harmful to consumers.

The China Consumers Association pointed out that allowing unfair algorithm applications to develop disorderly will harm the fair and orderly competition of the market economy, and will also expose consumers to data algorithm squeeze and become targets of technical bullying.

  In fact, Chinese law explicitly prohibits the "trivial" in algorithms such as "big data", and relevant laws and regulations are constantly improving.

For example, in October 2020, the "Interim Provisions on the Management of Online Tourism Operation Services" was officially implemented, which clearly requires online travel operators not to abuse technical means such as big data analysis, and set unfair trading conditions based on tourist consumption records and travel preferences.

The previously promulgated "E-Commerce Law" also made prohibitive provisions on "big data".

In addition, some lawyers pointed out that according to the Consumer Protection Law, if price fraud is carried out against users, users can claim compensation.

  Despite the legal backing, it has not stopped the platform's tendency to treat old users as "leeks". The high cost of rights protection and the low cost of illegality have become key factors.

A senior partner of a Shanghai law firm said that due to work needs, it is commonplace to book air tickets and hotels on business trips, and it is not uncommon to be "killed".

"At most I complained to my colleagues and friends, and almost no one really defended their rights. Firstly, it is too difficult to obtain evidence, and secondly, it takes a lot of time and cost."

  Experts point out that the concealment of big data makes it difficult to provide evidence for rights protection. This is also the main reason why many consumers fail to stop after encountering such incidents.

It is understood that most of the operators use different product models or configurations, different package discounts, or different purchase times as excuses.

Even if users successfully defend their rights, fines are not painful for platforms with a market value of several billion or even tens of billions of dollars.

  "Even those of us who understand the law have given up on protecting rights. It can be seen that the willingness of most consumers to defend rights will not be too strong. In this way, it encourages bad habits." A lawyer said.

  Strong supervision, the platform cannot be out of order

  What makes users even more helpless is that despite the various problems of the commonly used online platform APP, in many cases they have no choice because some platforms are already in a monopoly position.

  "The unfair application of algorithms is aimed at the general public, and everyone may become a potential victim." Li Yuanguang, deputy secretary-general of the China Consumers Association, proposed that the law should strengthen the effective regulation of algorithm application.

  Recently, the government's supervision of platform economic monopolies has become stricter.

It is reported that the State Administration for Market Regulation is formulating the "Guidelines for Anti-monopoly in the Field of Platform Economy", and Internet platforms related to the online economy are all within the scope of supervision.

At the same time, the revision of the Anti-Monopoly Law is also being actively promoted.

In the next step, the State Administration for Market Regulation will cooperate with industry regulatory authorities to jointly prevent some companies from risking competition disorder due to their data, technology, and capital advantages, increase regulatory enforcement in accordance with the law, and strengthen fair competition review.

  China Consumers Association Secretary-General Zhu Cambridge said that all sectors of society need to work together to strengthen the research and regulation of algorithms in the field of online consumption, promote their rational application, and effectively protect the legitimate rights and interests of consumers.

Xu Guangyao, a professor at the Law School of Nankai University, believes that when consumers encounter big data "killing familiarity", for small transactions, the cost of filing a breach of contract is high, and it is not enough to deter enterprises.

When it can be determined that the actor has a dominant position (or reached a monopoly agreement), Xu Guangyao suggested that consumers file antitrust lawsuits, and the punishment for monopolistic behavior will be 1% to 10% of the actor's turnover in the previous year.

  Regarding improper behavior that violates business ethics, platforms and industries should not ignore the voice of consumers.

The China Consumers Association calls on operators to strengthen self-discipline, operate in compliance with the law, and assume due obligations and responsibilities.

At the same time, various industry organizations should strengthen guidance and supervision to enable network operators to apply algorithms in a reasonable and compliant manner, purify the industry atmosphere, and promote sound development.

  Compo