This Is First US City to Ban Algorithm-Based Grocery Prices

Seattle is moving to shut down the practice of your grocery bill getting tweaked based on who you are and how you shop. The City Council recently approved an ordinance that would bar grocery chains and delivery services from "surveillance pricing," or using personal data and algorithms to set different prices for the same items—a ban that's a first for a US city, per Consumer Reports. The rules cover online and in-store prices, including electronic shelf labels and other tech, notes Axios.

The measure targets what one council member called "AI-assisted price gouging," following investigations that found Instacart prices at one Seattle Safeway varied by as much as 23% between customers. Stores can still offer broad discounts, like for seniors or students, and loyalty programs can give group deals. Retailers warn, however, that the law could wipe out personalized bargains. USA Today notes that nearly a dozen states have either already passed laws to bar surveillance pricing or are considering making such a move.

"Food is an essential good that's getting more expensive all the time," says Seattle Mayor Katie Wilson in a release. "People have been clear: They don't want their data fed into algorithms that decide how much they pay at the grocery store. Everyone deserves transparent pricing and equal treatment, not hidden systems that charge some shoppers more than others." The ordinance is expected to be signed in October and take effect in September 2027, per Axios.