Seattle mayor signs grocery law banning pricing differences based on personal data

Seattle mayor signs grocery law banning pricing differences based on personal data

by Joel Moreno,KOMONewsReporter

SEATTLE — Seattle’s crackdown on grocery pricing is now the law. The city is banning large stores from using the personal data of its customers alongside artificial intelligence to decide what each shopper pays for food.

Supporters call it a first-in-the-nation win for consumers, but the grocery industry warns it could put discount programs on the chopping block.

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The Fair and Transparent Pricing ordinance bars large grocery chains and delivery services from using information such as a customer’s browsing history, location, employment status, race, gender, social media activity, or chatbot conversations to determine the price that an individual pays for groceries.

The Seattle City Council passed the legislation last month, and Mayor Katie Wilson signed it into law on Monday. The law takes effect Sept. 1, 2027.

Wilson and Councilmember Alexis Mercedes Rinck, who developed the measure, said it is designed to ensure the price of food is based on the product rather than an algorithm that believes a particular customer can afford.

The ordinance requires prices to be clearly posted and available to all shoppers. It applies to grocery retailers with at least 20 locations worldwide, including online delivery services. Smaller grocery chains, convenience stores and farmers markets are exempt.

Supporters said traditional coupons and transparent discounts, including those for seniors, veterans and loyalty-program members, will still be allowed once this ordinance takes effect.

Despite that, there are still concerns the measure could jeopardize loyalty programs, targeted coupons and other discounts used by shoppers to reduce grocery bills. Grocery industry representatives contend the line between prohibited data-based pricing and voluntary, personalized savings programs is not clear enough.

Amanda Dalton, president and CEO of the Northwest Grocery Retail Association, previously told KOMO News the industry supports prohibiting the use of personal information to charge shoppers more, but Seattle could have achieved this goal without putting discounts at risk.

Safeway said it does not use personal information to raise prices for customers. The company said it uses customer data to provide voluntary digital coupons, member prices, and offers based on products shoppers may want.

A 2025 Consumer Reports investigation found algorithmic pricing at major retailers could result in price differences of as much as 23% for the same groceries.