Seattle is moving toward a proposed ordinance that would restrict grocery retailers from using consumers’ personal data to set individualized prices. If approved, the Fair Pricing and Transparency Ordinance would make Seattle the first U.S. city to regulate this type of pricing in grocery stores.
The proposal has drawn debate over whether personalized pricing practices raise costs for consumers or can provide savings through targeted discounts. Industry representatives argue the ordinance could create legal uncertainty and discourage retailers from offering discounts, coupons, loyalty rewards and other programs. Consumer advocates support restrictions on individualized pricing and say stronger enforcement provisions are needed.
The proposed ordinance would allow several types of discounts, including loyalty programs, volume-based discounts, manufacturer coupons and discounts based on broad categories such as student or senior status. It would apply to grocery retailers with at least 20 locations globally, as well as certain mixed-use retailers and delivery services.
Industry groups have raised concerns about the bill’s private right of action, which would allow eligible consumers to seek damages and civil penalties for violations. The proposal also would require covered retailers to retain pricing and discount records for three years.
The Seattle City Council is expected to vote on the ordinance in September following a committee meeting and consideration of amendments. If approved, the ordinance would include a one-year phase-in period.
The debate comes as federal regulators and several states consider or adopt measures addressing personalized pricing and the use of consumer data to determine prices.
