4 ms·

Charging different customers a different price for the same product is illegal under US law, and California laws don’t change that. EDIT: Several comments belo

Charging different customers a different price for the same product is illegal under US law, and California laws don’t change that. EDIT: Several comments below point out the innumerable businesses operating in such a way as to make mine an impossible claim. Enumerating the established methods to avoid meeting the legal parameters of price discrimination is not the same as price discrimination being legal. My bar for following just laws is higher than the minimum required to avoid being prosecuted. I’m sure experts can help work around any future privacy laws too, so why even worry? Surveillance already creates a different product one can charge more for, though your lawyer might advise you call it “personalization” in memos.

mattnewton 7y ago
This is suprising to me. I assume it is much more nuanced than that? How does insurance work then? Isn't insurance fundimentally the same plan with different prices for different groups depending on assessed risk?
matthewmcg 7y ago
That's not generally true. Businesses are free to vary their pricing provided they aren't violating some other law in doing so (e.g. laws prohibiting discrimination based on race or sex or laws requiring common carriers or utilities to charge prices set on a tariff).
refurb 7y ago
How do car dealerships do it then?
- connicpu 7y ago
  Because when you buy a car you aren't usually buying "a [year] [make] [model] [with these features]". You're buying "that specific car with that unique identifier"
  - refurb 7y ago
    The correct answer is “it’s not the law”. Or at least the way the OP described it. https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
  - emiliobumachar 7y ago
    Really? So all it takes to work around this supposed law is to give your products unique identifiers?
ummonk 7y ago
I have a coupon code that says otherwise.
CamperBob2 7y ago
Not even remotely true unless you're selling to the government. The GSA does get a bit testy if they think you're cutting someone else a better deal.
reaperducer 7y ago
Charging different customers a different price for the same product is illegal under US law Demonstrably untrue. It is illegal to charge a different price based on a protected class like race or gender. But travel sites, for example, are notorious for charging different people different prices based on their GeoIP, whether they're on mobile or desktop, or Windows vs Macintosh.
- deleted 7y ago
  [deleted]
- lightedman 7y ago
  "Demonstrably untrue." Robinson-Patman Act says "Please read me, and understand me and the Clayton Anti-Trust Act which I amend."
vonmoltke 7y ago
> that is not the same as price discrimination being legal From refurb's link below: "Price discriminations are generally lawful" See https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
- joshklein 7y ago
  You’ll love their take on net neutrality.
lightedman 7y ago
"EDIT: Several comments below point out the innumerable businesses operating in such a way as to make mine an impossible claim." They have no clue about the Robinson-Patman Act amendments to the Clayton Act.
briandear 7y ago
Airplane tickets. Car rental rates. Hotel rates. Buying a car. Loans: if I want to borrow $100k for 10 years, I will pay a different price than my next door neighbor asking for the same terms.

mattnewton 7y ago

This is suprising to me. I assume it is much more nuanced than that? How does insurance work then? Isn't insurance fundimentally the same plan with different prices for different groups depending on assessed risk?

matthewmcg 7y ago

That's not generally true. Businesses are free to vary their pricing provided they aren't violating some other law in doing so (e.g. laws prohibiting discrimination based on race or sex or laws requiring common carriers or utilities to charge prices set on a tariff).

refurb 7y ago

How do car dealerships do it then?

connicpu 7y ago
Because when you buy a car you aren't usually buying "a [year] [make] [model] [with these features]". You're buying "that specific car with that unique identifier"
- refurb 7y ago
  The correct answer is “it’s not the law”. Or at least the way the OP described it. https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
- emiliobumachar 7y ago
  Really? So all it takes to work around this supposed law is to give your products unique identifiers?

ummonk 7y ago

I have a coupon code that says otherwise.

CamperBob2 7y ago

Not even remotely true unless you're selling to the government. The GSA does get a bit testy if they think you're cutting someone else a better deal.

reaperducer 7y ago

Charging different customers a different price for the same product is illegal under US law Demonstrably untrue. It is illegal to charge a different price based on a protected class like race or gender. But travel sites, for example, are notorious for charging different people different prices based on their GeoIP, whether they're on mobile or desktop, or Windows vs Macintosh.

deleted 7y ago
[deleted]
lightedman 7y ago
"Demonstrably untrue." Robinson-Patman Act says "Please read me, and understand me and the Clayton Anti-Trust Act which I amend."

vonmoltke 7y ago

> that is not the same as price discrimination being legal From refurb's link below: "Price discriminations are generally lawful" See https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman https://www.ftc.gov/tips-advice/competition-guidance/guide-a...

joshklein 7y ago
You’ll love their take on net neutrality.

lightedman 7y ago

"EDIT: Several comments below point out the innumerable businesses operating in such a way as to make mine an impossible claim." They have no clue about the Robinson-Patman Act amendments to the Clayton Act.

briandear 7y ago

Airplane tickets. Car rental rates. Hotel rates. Buying a car. Loans: if I want to borrow $100k for 10 years, I will pay a different price than my next door neighbor asking for the same terms.