Think you could escape from fluctuating prices that you get when ordering food traditionally? Did you know that prices when getting your food from delivery apps also change? And, they change a lot.
New York has enacted the new Algorithmic Pricing Disclosure Act, which took in effect earlier this week, in that apps like Uber and DoorDash would be disclosing when prices will change or be set via algorithms, what else?
Under this new law, food delivery apps are mandated to let customers know not just changing prices, but also when their personal data are used, their location, and their past purchases.
Some residents in this state have already witnessed this big change, via notifications that pop up on their phone screen while ordering their food online, ridesharing media reported.
It’s not yet the notification that tells them prices already have changed, but a notice about the new law, saying that, “[It] requires that we make the following disclosure because we use information such as your delivery address to calculate distance and fees, and your past orders and favorite stores to provide personalized promotions and/or discounts. This price was set by an algorithm using your personal data.”
Or, somehow the prices would appear in their notification. Confusing, right? This is precisely what some customers are decrying, as they are doubtful about the new regulation and how it is being implemented, the media reported.
Some Uber users in New York, for instance, have noticed the similar disclosure on the screen prior to checkout on the app, though details on the new regulation are not present.
“This price was set by an algorithm using your personal data,” the disclosure clarified. “Your location is used to help us calculate fees and savings.”
Furthermore, this disclosure, similar to the notification you get on your computer or laptop when it needs an update, tells customers when the apps would use algorithms and customer data to determine prices. However, what customers actually want reportedly is how the companies use up the information to serve prices to users, which remains a mystery.
Over the previous years, Uber’s ride-hailing division implemented upfront pricing, which utilizes the app’s data on past trips and users to determine pricing.
As the plot thickens on this matter, debates on the effectiveness of this law would remain. Some parties think that this is actually unnecessary. However, in a world that gradually is relying upon virtual or online food deliveries, the need to know price changes is becoming ever more crucial.
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