Class Actions Target Algorithmic Pricing Practices
A growing series of class actions is challenging companies’ use of algorithms to set prices, according to a report from Law.com. The disputes focus on automated pricing practices and their impact on consumers.
The filings indicate that algorithmic pricing is drawing greater attention from courts and litigants. As more companies use software to adjust or determine prices, questions are likely to arise over how those systems are designed, what data they use, and how their pricing decisions affect customers.
The reported wave of lawsuits does not establish how the courts will evaluate these practices. It does, however, suggest that legal challenges to algorithmic pricing may become a continuing issue as automated decision systems remain widely used in commerce.