Economy

Lawmakers target AI price fixing

Consumer advocates have sounded the alarm about individualized pricing and algorithmic price collusion.
A sign indicating the availability of an apartment to rent stands outside a building early Friday, May 28, 2021, in downtown Denver. (AP Photo/David Zalubowski)

State lawmakers have introduced a wave of bills this year to regulate the use of algorithms to set prices, part of an effort to protect consumers from the black box nature of artificial intelligence.

The bills generally fall into one of two buckets: prohibitions on using algorithms to fix prices in a particular sector, including rental housing markets; and bans on using personal information to offer individualized prices to consumers, often referred to as surveillance pricing.

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