The CMA has opened a project to consider how dynamic pricing is being used across different sectors of the economy.
The project will gather views from businesses in various industries – including travel and leisure – that are using pricing practices that may be considered dynamic pricing. It will also engage with a number of stakeholders such as consumer groups and other regulators to obtain their views.
The project will consider:
different scenarios where dynamic pricing strategies are being used
commercial and consumer benefits of dynamic pricing strategies
whether dynamic pricing strategies create challenges for consumers and competition
The decision was triggered by the public response to the Oasis ticket sales earlier this year, after which the CMA said: “Dynamic pricing – where a business adjusts its prices (upwards and downwards) according to changing market conditions – is not in itself unlawful. However, where businesses use dynamic pricing or other complex pricing systems, they must not mislead customers about their prices, and must be transparent about how prices are set.
“Dynamic pricing is used across a range of sectors; it may be facilitated by the development of AI and other digital tools; and, in certain contexts, it can affect consumers’ trust in markets, and their ability to get good deals. Reflecting this, we are exploring any broader competition and consumer issues raised by dynamic pricing.”
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