Compliance

What Should We Ask a Pricing or Segmentation Vendor?

Ask whose data runs your segments and whether it is pooled with other customers’ data, how third-party data is approved, whether any logic uses competitor prices or predicts competitor reactions, who sets the final price, and whether the vendor can reproduce a past price from its records.

Last verified Oct 14, 2026 · Not legal advice

Questions and What a Good Answer Shows

Question for the VendorWhat a Good Answer Shows
Whose data trains and runs our segments? Is any of it pooled with, or benchmarked against, other customers’ data?Each organization’s segments use only its own records, at every layer.
Does every feature carry a source tag, and how is a third-party feature approved?A documented gate: consent for pricing use and a written reason the feature cannot be replaced.
Do you offer the same external data set to other customers in our industry?Awareness of common-input risk and a record of which external data each customer uses.
Does any rule or model use competitor prices, or predict how competitors will respond to a price change?No competitor-reaction logic, and competitor data excluded by default.
Who sets the final price? Can we override or reject every recommendation?Pricing authority stays with the business, with no auto-accept defaults.
How is the reference price defined, and can the system enforce a discount-only design?A defined baseline and a treatment direction recorded for every segment.
How are sensitive inferences detected before a segment goes live?Named features and combination testing, not only a check of the data schema.
Can you show the exact rule, data and version that set a given customer’s price on a past date?Reproduction of a historical decision from the stored record.
Is customer-facing disclosure text drawn from the production rule? How is drift checked?Disclosure generated from, and checked against, the same record that set the price.
How do you describe your customer base in marketing and sales materials?Restraint about naming competing customers in the same industry.
Which privacy obligations do you take on, and which remain ours?A clear written division of responsibility, including data warranties.
What records do you retain, for how long, and can they support an audit conducted at the direction of counsel?Versioned records the business controls and can produce when needed.

From Appendix C of the whitepaper. The questions apply to any vendor, including providers of deterministic segmentation.

Download PDFPDF edition: October 8, 2026.