The Netherlands Authority for Consumers and Markets (ACM) launched a study to find out how it can monitor the functioning of algorithms used by businesses.
The use of algorithms can have benefits for the businesses, such a matching supply and demand better. But, not all the aspects of these algorithms are in the consumers’ best interests. In fact, some businesses use them to encourage online consumers in their choices and purchases. In that context, ACM earlier this year published the Guidelines on the protection of the online consumer.
ACM launched an investigation into the functioning of algorithms and the way in which businesses use them, to see if they violate the rules set out by the ACM. This violation will happen if the algorithms determine prices, influence supply, and demand, personalize offers, lead to the creation of cartels, or nudge consumers towards a purchasing decision that is not in their best interest.
ACM made a trial (not an investigation) with Muziekweb, the music library of the Netherlands to look at the reasons as to why the algorithm recommends a music type to one individual and another music type to the other. ACM tried to identify what information it needs to be able to investigate the functioning of algorithms. In such investigation the ACM will look at different aspects such as the algorithm’s role in the alleged violation; its purpose, the basic principles that form the basis of the algorithm’s design and/or implementation, and the input for and the results of the algorithm.
(ACM-10.12.2020)
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NAZALI TAX & LEGAL |