Seattle City Council votes to ban surveillance pricing in sale of groceries

Key Points:

• The Seattle City Council passed the Fair Pricing and Transparency Act (CB 121267), which would ban the use of personalized pricing for groceries based on consumer data, making Seattle the first U.S. city to enact such legislation.
• The bill prohibits retailers from using personal data such as browsing history, location, inferred income, and family size to alter grocery prices, while still allowing various discount practices with increased transparency and limits on profiling.
• Consumer Reports supported the legislation by providing technical assistance, testifying, and advocating for consumer protections against unfair pricing tactics driven by data collection.
• Investigations by Consumer Reports revealed that companies like Kroger, Instacart, Uber, and Lyft use consumer data and algorithmic pricing to charge different prices to different customers for the same products or services, sometimes resulting in significant price disparities.
• The bill now awaits Mayor Wilson’s signature to become law, advancing Seattle as a leader in protecting shoppers from discriminatory pricing based on personal data.