Seattle has approved a new Fair Pricing and Transparency ordinance restricting grocery retailers from using personal information to set different prices for individual customers. The Seattle City Council approved the measure 7-2. The implementation date for this law is September 1, 2027.
The rationale offered for the ordinance is to prevent retailers from using personal data in algorithmic pricing to increase prices on some consumers.
While City officials have said traditional coupons and transparent discounts for groups such as seniors and veterans will remain legal, many programs that save consumers money are at risk.
The Washington Retail Association (WR) raised concerns during consideration of the ordinance, including its potential effect on loyalty programs, targeted coupons, and other discounts consumers use to lower grocery costs.
WR President and CEO Jan Himebaugh highlighted the value of loyalty savings for consumers, sharing that her family has saved nearly $1,000 through grocery loyalty programs this year, which she compared to the cost of more than 185 gallons of gas.
“We’re talking about the coupons that keep a cart full,” Himebaugh said, emphasizing that personalized discounts can provide tangible savings for households.
The debate also includes questions about whether restrictions on certain pricing practices could affect how retailers compete and offer discounts. Councilmember Maritza Rivera, who voted against the ordinance, said she supports prohibiting algorithmic pricing that increases prices but expressed concerns that the broader measure could limit loyalty discounts and contribute to higher grocery costs.
Councilmember Bob Kettle offered a series of amendments to save coupons, discounts, and loyalty programs that save Seattle consumers tens of millions of dollars annually. Councilmembers Kettle and Rivera fought hard to save those programs and ultimately voted against approving the legislation.
Seattle’s action is drawing national attention as the first U.S. city to adopt this type of grocery pricing restriction. Coverage has focused on consumer privacy, artificial intelligence, loyalty programs, and potential effects on grocery prices.
Additional links: KOMO News | FOX 13 Seattle | MYNORTHWEST
