AI-driven discriminatory pricing in Chinese e-commerce platforms
Chinese e-commerce and delivery platforms reportedly use algorithms to show different prices and coupon amounts to different users for identical products based on account information, browsing history, membership status and other factors. Consumers documented cases where the same item was priced at significantly different levels and high-level members paid more than occasional users for identical services.
What happened
Chinese e-commerce and delivery platforms use algorithms that show different prices and coupon amounts to different users for the same product based on account information, phone number, browsing history, location, membership status and other factors. A citizen purchasing a restaurant voucher with two friends simultaneously saw prices of 470, 443 and 433 yuan for the same item; another found the same dish priced at 9.68, 17 and 18 yuan across three accounts; a ride-hailing platform showed premium members higher prices than standard members for the same route. Testing revealed a hotel room priced at 550 yuan increased to 658 yuan within 13 minutes on the same device, with different discount mechanisms applied based on account characteristics and browsing patterns.
Reported impact
Consumers reported being charged more based on membership level, account age, browsing behaviour and other tracked characteristics. High-level members and frequent users reported paying more than occasional users for identical products and services, with price variations sometimes exceeding 100 percent. According to researchers, platforms hide discriminatory pricing within personalised coupon offers and discounts that vary unpredictably.
Index analysis
Researchers noted that discriminatory pricing has become more hidden in nature, using individualised coupons, promotional codes and membership benefits rather than direct price adjustments, making detection difficult for consumers. Platforms use non-transparent algorithms that adjust discount amounts and coupon values dynamically based on user profile information and behaviour patterns. Platform customer service representatives indicated that pricing factors including platform activity, hotel adjustments and third-party influences were difficult to attribute to specific causes.
Governance controls
China's internet administration and related departments issued the 'Internet Information Service Algorithm Recommendation Management Provisions' in March 2022, which took effect, though the specific application to discriminatory pricing practices was not detailed in the available facts. The provisions regulate algorithm recommendation services but specific enforcement mechanisms against this pricing practice were not documented.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.