City leaders in Seattle are taking aim at what they call a hidden threat to people’s grocery bills.
City leaders in Seattle are taking aim at what they call a hidden threat to people’s grocery bills.
The Seattle City Council has approved a first-in-the-nation ban on what some refer to as surveillance pricing. The new law, passed on Tuesday, prohibits major grocers from using artificial intelligence and shoppers’ personal data to set individualized prices.
Grocers warn the new law could put customer discounts at risk.
The Fair and Transparent Pricing ordinance passed 7-2, with Councilmembers Robert Kettle and Maritza Rivera opposed. It now goes to Mayor Katie Wilson for her signature.
The measure prohibits large online and brick-and-mortar grocery retailers from using information such as race, gender, employment status, location, browsing history, social media activity or chatbot conversations to determine what an individual shopper pays.
“I don't want them taking my data and telling me I'm going to have to pay more or less,” said Cathy Allen, who frequently shops at the markets on Queen Anne.
Retailers must clearly post prices and make them available to all customers. The ordinance preserves traditional coupons and transparent discounts, including those offered to seniors, veterans or loyalty-program members.
Rachel Markoya is a big fan of such programs.
“They are usually pretty useful because if I see something that is on sale, according to the store, I pick it up over another brand,” Markoya said.
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Councilmember Alexis Mercedes Rinck, who developed the ordinance with Wilson, said the goal is to prevent companies and data brokers from quietly using personal information to manipulate the price of everyday necessities.
A 2025 Consumer Reports investigation found that algorithmic pricing at major retailers resulted in price differences of up to 23% for the same groceries.
The ordinance applies to grocery chains with at least 20 locations worldwide and includes delivery services. Convenience stores, farmers' markets and smaller grocery chains are excluded.
The grocery industry has pushed back, arguing the law could unintentionally restrict personalized discounts and loyalty programs that customers use to lower their bills.
“We fully support personal information not being used to charge shoppers more and frankly, Seattle could have done that without putting the discounts and savings programs that Seattle families rely on at risk," said Amanda Dalton, the president and CEO of Northwest Grocery Retail Association.
Dalton pointed to the emphasis city leaders have made on Seattle being the first in the nation with this law.
“That also means that Seattle families are going to be the first to bear the risk if this untested policy results in fewer coupons, discounts and personal savings,” Dalton said. “Folks are very concerned that loyalty programs could go away just in the city of Seattle."
Safeway said it does not use personal information to charge customers higher prices. The company said it uses customer data for voluntary savings programs, including digital coupons, member prices and deals based on products customers may want to buy.
“We strongly disagree with the Seattle City Council’s decision to pass this legislation. Safeway does not engage in the pricing practices this ordinance claims to address, yet the measure will restrict personalized deals that help customers save on groceries,” a Safeway spokesperson said in a written statement. “Seattle consumers should not have to lose valuable savings because of a policy that fails to distinguish between raising prices and using customer information to deliver discounts.”
Rivera said she supports banning retailers from using personal data to raise prices but voted against the legislation because she fears it could make groceries more expensive for families by discouraging stores from offering discounts.
The Washington Retail Association also said it supports a ban on data-driven price increases but argued the Seattle measure could expose retailers to legal risk and cause them to eliminate coupons and tailored promotions.
