Chinese regulators are attempting to exert more control over Chinese e-commerce companies’ pricing three months after a broad crackdown on “forced exclusivity.” Price discrimination is the latest target of Chinese market watchdogs.
When China’s State Administration for Market Regulation (SAMR) announced restrictions on consumer pricing practices on July 2, it hinted that it would be stricter on price discrimination. Price discrimination is a type of tailored pricing in which businesses charge different costs to different customers for the same product or service based on their purchase behavior.
For a user who is a frequent big spender or has a history of last-minute purchases, an online travel agency may raise the price of an airline ticket. Platforms even appear to demand greater charges to their most loyal consumers, whom they believe would be prepared to pay more.
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