Consumption will force ‘apps’ such as Uber or Cabify to explain how they establish their prices

The Ministry of Social Rights, Consumption and Agenda 2030 has announced that it will regulate the algorithms used by companies to customize prices and advertising; for example VTC companies such as Uber or Cabify.

It will, as explained by the department directed by Pablo Bustnduy, forcing the parameters used by these algorithms to be transparent and accessible to consumers. In addition, these parameters may not be discriminatory or exploit situations of urgency or need. It must be remembered that in November, a month after the Dana hit Valencia, the Ministry has already modified the consumer law to prevent the ‘apps’ from rising prices in periods of high demand derived from an emergency situation.

And now this initiative arrives, which will also include the prohibition of varying prices that are automatically personally personallywith the aim of preventing consumers from feeling the pressure of making decisions in a hurried decisions for the uncertainty of variations.

As explained by the Ministry, with this proposal – it is pending to determine how it will be executed – it is intended to provide useful information to consuming persons to avoid possible discriminatory or misleading practices. A greater awareness of the use of personal data and greater control over privacy is also sought, as stated by the Minister of the Brid this morning in the act “rights of consumer and users in the digital field.”

To know how Uber or Cabify users will affect this, serve this example. Thanks to this new legal reformthe company that offers this service will have to offer clear information to the user of how the price shown has been formed. That is, the user will be able to know based on which parameters that price has been set, if it has been for the distance to the destination, for the time of the trip, for the frequency with which it performs that route or by the concurrence of mass events in the city in which it is located… In addition, the ministry has explained, it will be prohibited that the price of the trip be set for discriminatory reasons (race or disability).

“No business model can be based on the violation of rights,” said the minister, before adding that it is necessary to democratize economic relations, “building alternatives, with the aim of having fair, transparent exchanges and on equal terms.”