Can segmentation be discriminatory?

Yes, segmentation can be discriminatory when it excludes or disadvantages groups based on protected characteristics like race, gender, religion, age, or disability. Even when the intent is neutral, the outcome can be discriminatory if segment criteria correlate with these attributes.

Proxy discrimination occurs when seemingly neutral criteria like ZIP code, income level, or education status correlate strongly with protected characteristics. Targeting or excluding based on these proxies can produce discriminatory effects even without explicitly using protected categories.

Industries with regulatory oversight face heightened scrutiny. Fair lending, fair housing, and employment advertising laws prohibit targeting decisions that discriminate. Showing financial services ads only to certain demographics or excluding groups from opportunity can trigger legal liability.

Audit segments for disparate impact. Analyze whether certain demographic groups are over or under represented in high value or opportunity segments. Test whether segment criteria inadvertently exclude protected groups.

Build segmentation strategies around behavior and preference rather than demographic assumptions. Treat all qualified subscribers equitably and document your rationale for segment design.

A harbor that refuses entry based on the flag a ship flies rather than its cargo isn't just unfair. It's often illegal.