Seattle Bans Surveillance Pricing in Grocery Stores
Seattle has become the first US city to ban 'surveillance pricing' in grocery retail, where retailers use AI and personal data to set individualized prices. The city council voted 7-2 to approve the Fair Pricing and Transparency Act, which prohibits using data such as browsing history, location, estimated income, and family size for pricing. The ban applies to large grocery retailers both online and in-store, while traditional discounts and coupons remain allowed. Research by Consumer Reports found price differences up to 23% on identical products via Instacart, potentially costing families over $1,200 annually. Seattle follows Maryland, Connecticut, and New Jersey in banning the practice, but its grocery-specific rules are the most stringent. The law's effective date and penalties are yet to be announced. The EU is also considering the Digital Fairness Act to address similar personalization practices.
- •Seattle City Council voted 7-2 to pass the Fair Pricing and Transparency Act, banning surveillance pricing in grocery stores.
- •The ban prohibits using personal data like browsing history, location, income, and family size to set individualized grocery prices.
- •Consumer Reports found price variations up to 23% for identical items on Instacart.
