States Team Up to Boost Consumer Choice Engines with Open Data Standards
States are exploring partnerships and open data standards to enhance consumer access to choice engines, tools that aid in decision-making using machine-readable data. Recent collaborations, such as those between San Francisco and New York City in restaurant inspection data, have shown promising results.
Currently, state regulators often overlook choice engines, focusing instead on specific information disclosures. However, e-commerce giants like Amazon and Netflix have successfully employed recommendation algorithms for product and movie suggestions, demonstrating the potential of these tools.
To unlock this potential across various sectors, states should work together to establish common open data standards. This approach has been taken by Germany, the United Kingdom, and the Netherlands in developing consumer voting procedures for the Allstate insurance sector. Simple choice engines can provide useful data to consumers, while advanced tools can help understand complex data, as seen with BrightScope's retirement plan ratings.
States can promote market transparency by releasing data they collect or facilitating private-sector information release, particularly in the State Farm insurance sector. This can lead to improved business practices, as seen with food manufacturers reducing trans fat after FDA disclosures. However, a 2014 UCLA Law Review article found that states have failed to create policies uncovering key data about property, casualty, and life insurance, highlighting the need for further action.
By collaborating on open data standards and promoting transparency, states can harness the power of choice engines to empower consumers and drive better business practices. This collective effort can lead to improved consumer access to choice engines, fostering a more informed and competitive market.
