New York just pulled back the curtain on a practice that's been hiding in plain sight for over a decade. Under a groundbreaking new state law, retailers like Target must now disclose when algorithms use your personal data to set prices - even for basics like eggs and toilet paper. The catch? They don't have to explain how your data actually changes what you pay.
The disclosure appears as a small notice on Target's website: "This price was set by an algorithm using your personal data." It's buried behind an info icon customers have to actively click, then scroll to find. But it represents something unprecedented - the first time a major retailer has been legally required to admit their pricing isn't as straightforward as it seems.
The New York State law that took effect recently casts a wide net over what constitutes personal data. According to the legislation, it includes anything that can be "linked or reasonably linked, directly or indirectly, with a specific consumer or device." That could mean your browsing history, purchase patterns, estimated income, or even your zip code.
What the law doesn't require is transparency about the actual mechanics. Retailers must acknowledge they're using your data but can keep the algorithmic recipe secret. It's like being told your meal was personalized just for you, without knowing whether that means extra salt or a completely different dish.
Target has been perfecting this approach for years. Back in 2021, HuffPost caught the retailer changing prices based on store location associations. A company spokesperson defended the practice, saying online prices "reflect the local market." By 2022, Target settled a California lawsuit over allegations it used geofencing to automatically adjust app prices based on customer location.
The price variations are real and measurable. Shoppers near Rochester see Target's Good & Gather eggs listed at $1.99, while those in Manhattan's Tribeca neighborhood face a $2.29 price tag. The same pattern holds for toilet paper - a six-pack of Charmin costs $8.69 if you're associated with a Flushing, Queens store but $8.99 for Tribeca shoppers.
Target isn't breaking new ground here. The Wall Street Journal exposed similar practices at Staples back in 2012, when the office retailer displayed different website prices after estimating customer locations. Staples acknowledged the geographic pricing, citing "rent, labor, distribution, and other costs of doing business." ProPublica later found Princeton Review's SAT prep packages varying by thousands of dollars based on customer zip codes.
