Question

Several online stores now sell products to consumers at different prices based on the user’s information, such as geographical location—which determines your proximity to competitors and your area’s average income. Although this practice, known as Internet price discrimination, is not illegal, some would say it is unethical.

1) Do you believe this practice is unethical?

2) Should this practice be illegal?

3) If you think the practice should be legal, should retailers be required to put a disclaimer on their site? Explain your reasoning.

Answer 1

1) No, this practice of internet price discrimination is not unethical because for online stores geographical location of the consumer is very much important because distance of availability of products is totally dependent upon the geographical location of the consumer. Internet price discrimination. Any product or services on online portal include various taxes and shipping charges which may differ from location to location so it will also create an internet price discrimination scenario for the same product.

2) it is not illegal, as internet price discrimination is totally dependent upon the seller or vendor. Customers have many options in this digital world. Access of any product or services is highly dependent upon the season of the product, like in festival season prices of many products goes down. Internet price discrimination is a part of business.

3. Yes the practice of internet price discrimination should be legal and retailers should required to put a disclaimer on the site so that every customer understand the reason behind the price variability of same product. Customers or consumers will properly understand the reason behind the change variability in prices for the same product.