Chinese web firms are ‘bullying’ customers with data and algorithms, says country’s consumer watchdog
- Companies must stop using systems to scan through consumer personal data and offer them different prices for goods, says watchdog
- Watchdog says recommended products and services on online platforms should be ‘comprehensive and objective’ allowing consumers to make informed choices
Chinese internet companies have been violating customers’ rights by misusing personal data and “bullying” people into purchases and promotions, a government-backed consumer association said on Thursday.
The statement from the China Consumers Association (CCA) did not name any companies, but comes as Beijing has ramped up scrutiny of technology giants, reversing a once laissez-faire approach towards its vast internet space.
“Consumers are being squeezed by data algorithms and becoming the targets of technical bullying,” the association said.
Companies must stop using systems to scan through consumers’ personal data and offer them different prices for goods based on that information, the association said.
Another problem the watchdog highlighted was the use of personalised and targeted recommendations, achieved via monitoring the consumption patterns and browser histories of users, the watchdog said.
The problem with that, according to the association, is that consumers might not realise that the content they are viewing has been tailored for them and is different to what other users can see, which could mean they do not have access to all the information they need to make a well-informed purchase decision.
Some of the products, services and content that are recommended by platforms are also “against the law, public order and good customs,” the watchdog said without elaborating.