Google Automated Discounts has created major debate in the online trade industrySo let's say that this is the same thing as that. INEVO rewritten The GAD problem already in February 2025So let's say that this is the same thing as that. Some view it as an innovative strategy that provides lower prices for consumers, while others believe it is price discrimination and misleading marketing. What's the problem, and what does the law say?
What is Google Automated Discounts?
Google Automated Discounts (GAD) is a service where Google adjusts prices of real-time products based on the competitive situation, customer behaviour and online shop’s own minimum prices. This means that customers who find a product via Google Shopping can get a different price than those who go directly to the online store.
Several actors, including Lyko, have adopted this solution to win bidding rounds on Google and attract more customers. But this practice has also aroused strong reactions.
The Problems With Google Automated Discounts
1. Price discrimination?
Customers visiting the online store directly often pay a higher price than those who find the product via Google. This may be perceived as unfair and impair consumer confidence.
If prices are dynamic and change based on customer's search history, this can be considered as personalised pricing, which requires clear labelling under Norwegian law.
2. Misleading marketing
The Marketing Act requires that if a product is advertised as being reduced, the pre-price must be the lowest price the product has had during the last 30 days.
If the Google price is lower than the price in the online store but is not used as a pre-price, this may be contrary to the law.
3.The feeling and loyalty of the individual
Customers who discover that they could get a lower price via Google may feel tricked and lose their trust in the online store.
This may eventually lead to loyal customers stopping trading directly from the online store and instead always searching for the products via Google.
What speaks in favour of players using Google Automated Discounts?
1. Google Automated Discounts can be compared to discount codes
Online shops may argue that this works in the same way as discount codes and promotions provided to selected customer groups.
The Consumer Protection Authority has previously stated that personalised discount codes do not necessarily affect the pre-price.
2. Price can be widely available
If all customers applying via Google receive the same discount, it can be argued that this is not personalized pricing.
The Consumer Protection Authority has not yet concluded whether the Google prices are personal or general.
Three. Google determines prices, not online stores
Google sets the price based on an algorithm that analyses the competitive situation. Online shops may claim that they only give Google a minimum price, but do not control how the price is adjusted further.
4. Industry practices
- Several competitors, including Eleven, NordicFeel and Blush, use the same solution.
- online shops may argue that if the practice is illegal, other actors should also be examined.
What does the law say?
As follows the marketing law and price information regulation must reflect the lowest price a product has had in the last 30 days;So let's say that this is the same thing as that. If Google prices are considered to be widely available, they must be included in this calculation.
The consumer oversight has not yet made a final decision as to whether this practice is lawful or not, but has expressed concerns that this may be a form of misleading marketing.
What should Norwegian online shops do?
The use of Google Automated Discounts can have major consequences for online commerce. If the Consumer Protection Authority concludes that the practice is illegal, it may lead to penalties and new regulation. On the other hand, if the practice is accepted, we can expect more players to put it into practice, which may change the whole dynamics of the industry.
For Norwegian online shops, it is now about being proactive and ensuring that they operate in accordance with the legislation. There are alternatives that provide more control over the price strategy, without the risk of breaking laws or weakening customer confidence.
Sigrid Sevaldsen, Director of the Industry for Technology in Verke, lifting a Norwegian company, as an actor who can help Norwegian online shops get control of prices so that they avoid breaking the law.
What do you mean? Is Google Automated Discounts a smart strategy for better prices, or an unethical tool that undermines competition?
In INEVO we love to experiment with new solutions. The theme is therefore for E-commerce Day 2025: ExperimentationSo let's say that this is the same thing as that.
Relevant sources:
Hidden pricing fraud online - how Google creates unfair competition (INEVO, 2025)
New price tool: Could have been missed by 200 million. (E24)
Same product in the same store - 500 kroner difference (E24)
How new Norwegian pricing rules affect online shops (INEVO, 2024)