Supermarket loyalty programmes may lead to higher prices - Consumer NZ
Consumer NZ is warning that supermarket loyalty programs could facilitate dynamic pricing, where individual prices are adjusted based on shopper data. While local supermarkets deny using such tactics, the watchdog remains concerned about the potential for algorithmic price discrimination.
Why it matters
As retailers increasingly use AI to optimize revenue, consumers face potential risks regarding price transparency and data privacy.
Consumer NZ is raising the alarm over how data obtained from supermarket loyalty programmes could lead to higher prices for customers, but both Foodstuffs and Woolworths deny this is the case.
The article presents the watchdog's concerns alongside the retailers' denials, maintaining a balanced perspective.
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