Compliance software solution provider Trusaic has opened the Pay Gap Store, an ecommerce shop that “suggests” prices for customers based on gender and ethnicity. The store sells a range of T-shirts, mugs and tote bags with the message, “Where’s my X%?” — where the value of “X” depends on each customer’s gender plus race/ethnicity and the associated pay gap.
Shoppers whose gender plus race/ethnicity experiences higher pay will be asked to pay more than those who, on average, earn less. For example, Asian men are invited to pay the highest prices because they earn the most and face no pay gap on average. All other groups are suggested a lower price based on their personal discount:
- A mug may suggest a baseline price of $24.99 for an Asian man;
- That same mug would suggest a price of $20.99 for a white man (reflecting a 16% pay gap); and
- The mug would suggest a price of $12.24 for a Hispanic woman (reflecting a 51% pay gap).
The store doesn’t actually require customers to pay different prices. The suggested prices are based on each shopper’s profile, but everyone can choose to pay the lowest price if they prefer (in the above example, anyone could purchase the mug for $12.24). All profits from the store will be donated to an appropriate charity.
The different prices are based on U.S. Census data collected from the 2019 American Community Survey. Trusaic used this data to calculate the difference between the average wage earned by the selected class and the highest-paid class, then divide that by the highest-paid group’s wages to determine the pay gap.