Chinese state-backed group calls for regulation of tech giants’ algorithmic ‘bullying’

A document released by the China Consumers Association (CCA) is urging the government to strengthen supervision over artificial intelligence and data-driven algorithms that internet companies are using.

CCA alleged that tech giants are utilizing technology to decide what information their customers can access, as well as make use of personal data for profit.

Listed in the document were some behaviors that allegedly harm customers’ rights. These include hiding negative reviews, using complex online promotion rules, and facilitating “algorithmic price discrimination” – a practice where platforms offer different prices to different people based on what customers are willing to pay for.

The organization proposed to establish a special unit to supervise, investigate, and regulate “unfair algorithms.” It also suggested that the regulators be put in charge of tech giants’ “secret sauce,” which refers to the algorithms used to support their businesses.

According to the report, the move suggests that the government is planning to release draft rules to regulate AI and algorithms. It added that the draft regulation is expected to be out later this year.

“It might also be a hint about what regulators are considering. Or just let the consumer rights association test the waters and see how the general public and in particular the (tech) industry responds,” Clement Chan, a legal professor at the University of Hong Kong, told Caixin.