Seattle Mayor Katie Wilson signed legislation prohibiting large grocery retailers and delivery services from using customers’ personal information to set individualized prices, making Seattle the first U.S. city to enact such a ban. The Seattle City Council approved the measure 7-2 following debate and opposition from grocery industry representatives.
The law targets “surveillance pricing,” in which businesses use information such as online search activity, social media history, demographics, and other personal data to determine prices. It applies to large grocery retailers and delivery services, with exemptions for smaller grocery chains, convenience stores, and farmers’ markets. The law takes effect September 1, 2027.
The Washington Retail Association (WR) worked with grocers and delivery companies for several months to seek changes to the proposal, meeting with the mayor’s office and City Council members. WR supports prohibiting businesses from using personal information to charge consumers higher prices but raised concerns that the ordinance’s broad language could threaten discounts, coupons, and loyalty programs that help shoppers save money.
WR representatives urged city leaders to amend the legislation to clearly protect these programs, which the association says save Seattle consumers tens of millions of dollars annually. WR also advocated for preserving retailers’ ability to use security cameras and other technology to address organized retail crime and workplace violence.
John Engber, director of the Retail Industry Coalition of Seattle, presented WR’s concerns during public hearings and called for amendments to protect consumer savings and retail security measures. The association warned that uncertainty around compliance could lead retailers to scale back targeted promotions and increase operating costs.
City officials have said traditional coupons and certain discounts, including offers for qualifying groups, remain permissible under the law. However, WR maintained that the rules could still create legal risks for some existing loyalty and discount programs.
The ordinance gives the Seattle City Attorney’s Office enforcement authority, including the ability to subpoena records, and allows individuals to bring lawsuits over alleged violations.
Although WR advocated for changes, the legislation passed and was signed into law. WR will now work with other business and industry groups to pursue legislation at the state level that provides clearer and stronger protections for coupons, discounts, loyalty programs, and other legitimate consumer savings programs. The goal will be to ensure efforts to address discriminatory or improper pricing practices do not unintentionally limit the promotions and benefits Washington consumers rely on to save money.
As Seattle moves toward implementation, WR will continue monitoring the ordinance and advocating for policies that protect consumers from inappropriate uses of personal information while preserving access to discounts, loyalty programs, and other savings opportunities.
