Quote: The first study, due to be completed next spring, will look at behavioural advertising and customised pricing, where the prices fluctuate depending on information about a person's internet use.
Behavioural advertising has proved controversial. It can involve observing what websites a person visits, keywords they use in search engines, as well as how long they stay on certain websites or approximately where the consumer is located. Privacy advocates have roundly criticised the systems, even if the data is anonymised.
The other study will investigate deceptive pricing practices. It includes practices such as 'baiting', where some products are discounted but there are too few quantities. Consumers may then end up buying a more expensive product or are pushed into upgrading a product at a higher cost. The OFT said "potential representatives" of the practice include travel websites and airlines, consumer electronics retailers and clothes websites. |