Your Data Could Influence the Price You Pay for Eggs

If you’re nearby Rochester, New York, the price for a carton of Target’s Good & Gather eggs is listed at $1.99 on its website. However, in Manhattan’s upscale Tribeca neighborhood, that price rises to $2.29. The reason for this price variation is not clear, but a recent notice on Target’s website hints at an explanation: “This price was set by an algorithm using your personal data.”

A newly enacted New York State law mandates that businesses using algorithms to set prices based on customer personal data must disclose this information. The law defines personal data as any information that can be “linked or reasonably linked, directly or indirectly, with a specific consumer or device.” Interestingly, the law does not require businesses to specify what particular data is being used or how it influences the final price that a customer sees. There is an exception for location data used solely for calculating cab or rideshare fares based on distance and trip duration, but not for other purposes.

Additionally, the law stipulates that disclosures must be “clear and conspicuous.” Target’s disclosure, however, is not very easy to locate—a customer would need to click the “i” icon next to the item’s price and then scroll down in the pop-up. Historically, courts have ruled that it isn’t always reasonable to expect customers to click on “more information” links when not explicitly required.

Target has not responded to inquiries regarding the price differences or clarified which personal data was utilized as per the disclosures.

For years, Target has followed the practice of implementing varying prices based on location. In 2021, the Huffington Post discovered that Target’s website adjusted prices according to the store location linked to a user, with a company spokesperson stating that its online prices “reflect the local market.” In 2022, the company settled a lawsuit brought by multiple California county district attorneys accusing it of using geofencing to automatically update prices in customers’ Target apps. Currently, when visiting Target’s website, it still automatically associates users with a nearby store, although this can be changed in the site’s settings. (Target has not provided clarification on how it determines which physical store to link with website visitors.)

Besides eggs, the price of toilet paper also seems to vary based on the store associated with the customer. For those linked to a store in Flushing, Queens, a six-pack of Mega Charmin Ultra Strong Septic-Safe Toilet Paper is priced at $8.69, while customers in the Tribeca location see a price of $8.99 for the same item.