Don’t scratch your head, you have been “killed” by big data…

Popular Science Times reporter Chen Jie

On the online platforms I frequent, the prices of some products or services are always higher than others; when I log in to an online shopping app with a different phone, the price of the same product can differ by tens to hundreds of yuan...

Don’t scratch your head, you have been “taken advantage of” by big data.

On November 24, relevant state departments jointly issued the "Notice on launching a special campaign to "Clear and Bright" and to address typical problems in Internet platform algorithms" (hereinafter referred to as the "Notice"), which will focus on rectifying the frequent chaos of "killing old customers" in big data.

Big data "killing the familiar" is actually the online platform using algorithms to analyze your consumption habits, payment ability and other data, and then "tailor-make pricing" for you. "Simply put, for the same product or service, the price you see will be much higher than others," said Zeng Lingping, a data security consulting expert at Green Alliance Technology.

In daily life, the phenomenon of big data "killing the familiar" is common. For example, in the commonly used business travel software, when you search for air tickets or hotels in the APP, the algorithm will analyze your previous ticket purchase or hotel reservation records. If you are a "high-quality old customer", then when displaying the air ticket or room price, you may see a much higher price than other users.

The same is true for the online taxi service that people use the most. When you open the app, the algorithm in the background will start quickly. If it is confirmed that you are a regular user, and you often take taxis to high-end residential areas or business places, or you don’t care about the surcharge when you take taxis, the algorithm may quietly add a "premium coefficient" to the original normal price.

Not only that, big data "killing the familiar" is also common in areas such as e-commerce shopping and takeout ordering, and the routines used by these platforms are basically the same.

"Old users generally have higher loyalty and dependence, so the platform believes they can make more profits from them." Wang Peng, an associate researcher at the Beijing Academy of Social Sciences and a big data business analyst, said that the algorithm, which was originally known for its fairness, has now become an "accomplice" for the online platform to achieve its goals.

By using algorithms to “take advantage of old customers,” the platform can indeed “blackmail” and make more money in the short term, but it will also lose the trust of consumers, which is a typical case of “picking up sesame seeds and losing watermelons.”

In 2020, tourist Ms. Hu booked a hotel room for 2,899 yuan through a well-known business travel app, but found out that the actual listing price was only 1,377 yuan when she checked out. Ms. Hu, who was "killed by the familiar" by big data, angrily took the platform to court. The court found that the platform had engaged in price fraud and deception, and the platform eventually ended up "refunding one and paying three".

At that time, this lawsuit caused a sensation and made people see clearly the platform’s keenness on “killing old customers”.

The release of the "Notice" will inevitably have a deterrent effect on the chaos of "killing the familiar" with big data. Zeng Lingping believes that in addition to special actions, more governance measures are expected. "The "Internet Information Service Algorithm Recommendation Management Regulations" will not be officially implemented until March 2022. The overall governance of algorithms is still in its infancy, and it will take some time to really produce results."

How can we avoid the “killing of familiarity” effect of big data?

Zeng Lingping believes that enhancing one's awareness of data security and rights protection is the best way. "We can turn off unnecessary 'buttons' such as personalized recommendations and advertising push to protect our personal information and privacy data; when we find ourselves being 'taken advantage of', we must take legal action to safeguard our legitimate rights and interests."