EPISODE 2

Algorithms, Trust, and the Law: Flashpoints of Pricing Risk & Profitability for Retail Executives

Host

Lucy Nicholls

VP - Marketing & Design

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Guest

Eugene Zelek

Senior Counsel

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In this episode of The Commerce Cast, Lucy Nicholls sits down with Eugene (Gene) Zelek, Senior Counsel at Taft Stettinius & Hollister and one of North America’s foremost authorities on pricing, marketing law, and antitrust strategy.
Gene has spent more than three decades helping global brands navigate the complex intersection of pricing, law and trade relations, advising Fortune 500 companies on how to drive growth while staying within the bounds of compliance and trust. Described as both “the foremost pricing/distribution law expert in the country” and “hands-down the most practical, business-oriented outside counsel”, Gene brings a rare combination of legal precision and commercial insight to a topic that defines the modern marketplace.
Together, Lucy and Gene explore how AI, automation, and dynamic pricing are transforming the economics of retail.

You’ll learn:

Why algorithmic pricing isn’t new, but its reach and speed are unprecedented
Thoughts on safeguarding brand reputation from emerging “digital trade relations” risks
What every senior leader should understand about AI-driven pricing governance
Why the future of pricing depends less on regulation and more on responsible leadership

A masterclass in the strategy, ethics, and risk of modern pricing, this conversation explores how to stay profitable and principled in the evolving consumer pricing landscape.

Key Takeaways

1. Pricing is both a power lever and a liability

Pricing remains one of the most immediate levers for profitability but is now fraught with legal, ethical, and reputational risk due to AI, dynamic pricing, and public scrutiny.

2. Business often overestimates legal constraints

Many executives play it overly safe, assuming pricing flexibility is more restricted by law than it actually is. A key legal role is to clarify where there’s room to maneuver within compliance.

3. Flexibility and an exit strategy are essential

With regulation lagging innovation, businesses must maintain nimbleness and plan exit strategies before locking into long-term pricing frameworks or AI tools.

4. Global pricing law varies dramatically

What’s permissible in the U.S. (like minimum resale or advertised prices) can be illegal in Europe or Asia. Global firms must tailor regional policies instead of applying one-size-fits-all standards.

5. Dynamic pricing: legal but reputationally risky

U.S. law doesn’t prohibit consumer-level price variation, but brand trust and fairness perceptions are major risks — especially if pricing correlates with idenity-related factors.

6. The “agentic commerce” future complicates visibility

As digital agents begin negotiating purchases autonomously, pricing data becomes opaque, challenging monitoring, contracts, and regulatory enforcement.

7. AI amplifies both opportunity and risk

AI enables hyper-granular pricing and faster market reactions but can’t assess context, empathy, or reputational fallout. Human oversight and ethical judgment remain irreplaceable.

8. The biggest risk isn’t legal — it’s relational

Zelek distinguishes between legal, trade-relations, and business risk — arguing that trade-relations risk (how pricing impacts partners, resellers, and consumers) is often the most fraught.

9. Governance depends on clarity and alignment

Best practice in pricing governance requires clear objectives, executive commitment, and aligned incentives — avoiding conflicts like sales teams rewarded purely on volume instead of profit.

10. The future: cautious evolution, not revolution

Regulation (e.g., California’s new algorithmic pricing law) will take years to settle. Companies should evolve gradually — maintaining flexibility, critical thinking, and a clear mission anchored in trust and ethics.

“The challenge isn’t just training algorithms how to price, it’s reframing leadership and trust around governance and trade relations.”

A revealing conversation between Lucy Nicholls and Eugene (Gene) Zelek on the new frontier where law, trust, and technology collide.

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