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Original title: Many routines harm the interests of consumers. It is difficult to protect rights. Big data must be severely punished for “killing familiarity” Source: People’s Daily Overseas Edition
It damages the interests of consumers and does not favor the healthy development of the industry.
Big data must be punished harshly! (China online)
The price of the same type of room is different, but the taxi ride on the same route is much higher than in others. Takeaway food in the same store is always more expensive than in others … In recent years, the platform economy has developed rapidly and Big Data offers consumers more personalized products and services. 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, noting that some Internet platforms use algorithm technology to “kill” big data and damage consumer rights. legitimate interests of consumers. The effective regulation of the application of algorithms must be strengthened.
There are so many routines that users cannot protect themselves from
“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 navigation software and found the problem: the vehicle was running smoothly and the straight line was not congested, but the navigation of the car indicated that it was going to drift. He rushed to ask the driver to change the line.
As a “heavy user” of the taxi calling software, Zhao Wenjun did not become the prey of the “dark arrow” algorithm this time. However, some consumers are not so lucky. Some users shared their experience of being “cut leeks”: “My wife and I took a taxi at the same time and started at the same time. With the same starting and ending points, my price will be more and more expensive because I use this route every day. My wife is I fight from time to time “.
Not only transportation, but with the rapid development of the platform economy, there are more or less large data “killing” phenomena in online shopping, travel hosting, e-ticket sales, food delivery orders and other areas of consumption. The so-called “familiarity killing” means that for the same goods or services, the prices old customers see are much more expensive than the new ones. There are consumers who are obviously members of the platform, but the prices of their products are higher than those of ordinary users.
There are more hidden tricks to “break the familiarity” with big data. Based on consumer complaints, the China Consumers Association has solved other types of algorithmic price discrimination, such as setting different prices based on consumer location and page views.
Some programmers explained the “mystery”: if you normally spend more time searching for pet clothing and supplies, users will be more familiar with the price range of these commodities and the platform tends to recommend profitable products. On the contrary, when users start looking for products that they do not usually look at and the browsing time is not long, the algorithm will tend to recommend higher-priced products.
Experts point out that because different consumers have different sensitivity to price, there are also differences in willingness to pay. Therefore, compared to implementing uniform prices for “equal treatment”, differential pricing behavior can also meet the needs of merchants to increase new purchases, increase buyback rates, and increase profits. However, for normal users with limited time and energy, it can be described as full of routines and difficult to defend.
Rights are tough, unhealthy trends must stop
The “Internet Platform Competition and Monopoly Watch Report” released in December 2020 shows that consumers have a strong reaction to the issue of the “killing of big data”, believing that this action harms the interests of consumers. The China Consumers Association noted that allowing unfair algorithm applications to develop in a haphazard manner will damage the fair and orderly competition of the market economy, and will also expose consumers to data algorithm compression and become targets. of technical harassment.
In fact, Chinese law explicitly prohibits the “trivial” in algorithms like “big data,” and the relevant laws and regulations are constantly improving. For example, in October 2020, the “Interim Provisions on the Management of Online Tourism Operations Services” were officially implemented, clearly requiring that online travel operators not abuse technical means such as big data analysis and establish unfair trade conditions based on tourists. ‘consumption records and travel preferences. The previously enacted “Electronic Commerce Act” also contained prohibitive provisions on “big data”. Furthermore, 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 hasn’t stopped the platform’s push to treat old users like “leeks.” The high cost of protecting rights and the low cost of illegality have become key factors. A senior partner at a Shanghai law firm said that due to work needs, booking airline tickets and hotels on business trips is common, and it is not uncommon for them to “get killed.” “At most I complained to my colleagues and friends, and hardly anyone really stood up for their rights. First, getting evidence is too difficult, and second, it takes a long time.”
Experts point out that concealing big data makes it difficult to present proof for the protection of rights, which is also the main reason why many consumers do not stop after encountering these types of incidents. It is understood that most carriers use different product models or configurations, different package discounts, or different purchase times as excuses. Even if users successfully defend their rights, the 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. You can see that most consumers are not too willing to defend their rights. In this way, it encourages bad habits,” said a lawyer.
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 application, in many cases they have no other choice because some platforms are already in a monopoly position.
“The unfair application of algorithms is aimed at the general public and everyone can become potential victims.” Li Yuanguang, deputy secretary general of the China Consumers Association, proposed that the law should strengthen the effective regulation of the application of algorithms.
Recently, the government’s supervision of platform economic monopolies has become more stringent. It is reported that the State Administration of Market Regulation is formulating the “Guidelines for Antitrust 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 Antitrust Law is also actively promoted. In the next step, the State Administration of Market Regulation will cooperate with the regulatory authorities of the industry to jointly prevent some companies from running the risk of competition disorder due to their advantages in data, technology and capital, increase the application of the regulations in accordance with the law and strengthen equity. review of the competition.
The general secretary of the China Consumers Association, Zhu Cambridge, said that all sectors of society should work together to strengthen the research and regulation of algorithms in the field of online consumption, promote their reasonable application and effectively protect the legitimate rights and interests of consumers. Xu Guangyao, a professor at Nankai University School of Law, believes that when consumers encounter large amounts of “familiarity-killing” data for small transactions, the cost of filing a breach of contract is high and not enough for deter businesses. 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 monopoly behavior will be 1% to 10% of the actor’s turnover in the market. last year.
Regarding inappropriate behavior that violates business ethics, platforms and industries should not ignore the voice of consumers. The China Consumers Association urges operators to strengthen self-discipline, operate in accordance 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 reasonably and compliantly, purify the industry atmosphere and promote sound development.
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