Which prohibition related to pricing is included in China's AI law?

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The inclusion of a prohibition on price differentiation in China's AI law addresses concerns about fairness and transparency in pricing strategies utilized by businesses. Price differentiation refers to the practice of charging different prices to different customers for the same product or service, often based on data collected through AI algorithms. This can lead to inequitable treatment of consumers, particularly if certain demographics are unfairly charged higher prices.

The goal of this prohibition is to prevent potential exploitative practices that could arise from using AI to segment consumers in ways that are not transparent or justifiable. This aligns with the broader principles of fairness and accountability in AI governance, ensuring that all consumers receive equal treatment when purchasing goods or services regardless of the data-driven insights that might otherwise influence pricing decisions.

In contrast, the other options—prohibition on discounts, dynamic pricing, and loyalty programs—do not encapsulate the same focus on fairness in the same manner as price differentiation does. They involve pricing strategies that, while they may raise concerns, are not specifically targeted as unjust or deceptive practices under the provisions of this law.

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