Shenzhen law bans e-retail pricing bias using big data
South China's high-tech hub Shenzhen has introduced a new regulation to ban mobile apps and websites from applying biased pricing based on users' preferences or habits sourced through big data.
The ban comes with a fine of up to 50 million yuan (US$7.73 million) for companies that continue the practice.
The regulation, which will take effect from January 1 next year, was published on the website of Shenzhen Municipal People's Congress.
E-tailers have been found to charge customers different prices for the same products after analyzing through big data their consumption habits and other preferences.
The regulation stipulates that online platforms will not apply discriminatory pricing and services to consumers of the same status.
Big data is now widely employed in information technology applications and increases the efficiency of platforms. However, the new regulation guards against platforms that use it to infringe on consumers' rights and interests.