Data-Driven Pricing - Emerging Regulatory Issues

As digital commerce deepens across Nigeria, a new pricing strategy is emerging among online retailers, digital service providers, and fintech platforms—data-driven pricing. Popular among SaaS providers, e-commerce companies, ride-hailing apps, and financial platforms, this strategy allows businesses to use data—often personal—to determine how much each customer pays. While this may improve efficiency and competitiveness, it also raises serious questions about fairness, transparency, and consumer protection.

This article aims to demystify data-driven pricing, highlight the regulatory developments in more mature markets like the United States, and suggest proactive steps Nigeria’s regulators can take to address the potential risks in this evolving space.

🔍 What Is Data-Driven Pricing?

Data-driven pricing refers to the use of consumer data—whether personal or non-personal—to determine prices, offers, and discounts for different users. Prices are not fixed but can change based on:

• User behavior (e.g. browsing or purchasing habits),

• Location,

• Time of day,

• Device type,

• Or other demographic or psychographic factors.

This practice is often enabled by algorithms and automated decision systems, and is used to personalize or optimize pricing at the individual or segment level