Google's new Automated Discounts (GAD) feature in Google Shopping has sparked concerns within the e-commerce industry, particularly regarding its impact on pricing transparency and compliance with Swedish regulations. GAD allows e-retailers to set a maximum discount range, with Google's AI adjusting prices individually for each customer based on their behaviour and search history. This dynamic pricing model means the same product can be sold at different prices to different customers, raising questions about how to define a product's "previous lowest price."
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The Swedish Consumer Agency has clarified that the "previous lowest price" should be the lowest price a product has been marketed at within the last 30 days, including those reduced via Google Shopping. 'Lowest price in the last 30 days is the price that the company has applied (marketed), which does not necessarily mean that someone has actually purchased the product,' said Johan Ohlsson, head of unit at the Swedish Consumer Agency.
This ruling presents challenges for e-retailers using GAD, as they must have access to the data showing the lowest price displayed over the past 30 days, information currently only available to Google. This has made it difficult to ensure accurate pricing under the new system. The Norwegian Consumer Agency has also raised similar concerns, advising e-retailers to define the lowest price displayed on Google as their regular price to avoid potential violations.
As the debate continues, e-retailers are faced with a tough decision: adopt GAD and risk regulatory penalties, or avoid it and lose competitiveness.
Source: www.ehandel.se