Seattle is moving to crack down on a new form of grocery pricing that can change from shopper to shopper based on who they are and what companies know about them.
What's happening?
In a move to prohibit major grocery retailers, whether online or brick-and-mortar, from using sensitive personal data to charge shoppers different prices, Seattle Mayor Katie Wilson joined council members Alexis Mercedes Rinck and Dionne Foster to present to the council committee on human services, labor, and economic development what the mayor's office described as the "groundbreaking" Fair and Transparent Policy, as reported by MyNorthwest.
The measure would be the first in the country aimed specifically at targeted pricing for groceries and other essential goods. The proposal covers information that would be blocked from retailers such as employment status, race, gender, social media activity, browsing history, chatbot conversations, and other personal details.
It would also require prices to be posted clearly and made publicly available. Programs that offer standard discounts to seniors, veterans, and similar groups would remain allowed.
Rinck framed the concern, saying, "Groceries are getting more expensive for everyday Seattleites, while the buying, selling, and leveraging of our private information to manipulate prices is making big national grocery corporations millions in profits."
Why does it matter?
Companies using AI tools and personal data to "price-max" consumers leave people in the dark on whether prices are accurate. Biased pricing based on personal information creates unfair costs, promotes hidden discrimination, and leaves shoppers feeling cheated when they already feel like they're paying too much.
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That lack of transparency is especially significant when many households are already feeling financial pressure. MyNorthwest reported that SNAP reductions have already shaken the community and made food prices an even more urgent issue for families with tighter grocery budgets.
Officials also cited a Consumer Reports investigation involving Seattle customers that found Instacart conducted AI pricing experiments, leaving some shoppers paying notably different prices for the same product.
Requiring visible, public prices allows shoppers to compare options and feel assured that every person is being charged equally.
What's being done?
If adopted, Seattle's measure would separate transparent savings from algorithmic price discrimination.
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Retailers could continue to use conventional coupons and clearly labeled discounts, and shop a little easier knowing their private data isn't dictating different prices for the same item in the same store.
"The same product, in the same store, should cost the same no matter who's pushing the cart," Wilson said. Foster added, "As a City, we must make certain that innovation serves the public, not the other way around, and that every Seattle resident can shop knowing they're being treated fairly."
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