OFT Asks: Do Targeted Consumers Pay Different Prices?

In the UK, the OFT (Office of Fair Trading) is calling for information to help it explore the extent to which businesses are monitoring online shopper behaviour, and then using resulting data to target consumers with personalised prices.

The non-ministerial government department plans to examine those businesses which monitor consumer behaviour online, collecting and recording information about individual shoppers' purchasing habits, web sites they have visited, and items and services they have looked at. It will then look at how businesses are using such consumer information, as well as whether they change the prices they offer individual shoppers as a result.

As part of its work, the OFT will be consulting with a number of its international counterparts, including the US Federal Trade Commission, on commercial uses of consumer data.

Clive Maxwell, OFT CEO, comments: 'It is important we understand what control shoppers have over their profile and whether firms are using shoppers' profiles to charge different prices for goods or services. This call for information will help us understand these practices better and to decide whether or not this is an issue on which the OFT needs to take any action.'

Information will be gathered over the next six months during which time, the OFT wants to hear from interested parties including online retailers and software providers. Findings will be published next spring.

Web site: www.oft.gov.uk .