{"id":89042,"topic":"ai","source":"KOMO","title":"Seattle ban on AI-driven grocery pricing sparks warnings of lost discounts from retailers - KOMO","url":"https://komonews.com/news/local/seattle-ban-on-ai-driven-grocery-pricing-sparks-warnings-of-lost-discounts-from-retailers-store-safeway-katie-wilson-groceries-food-neccessities-household-economy-artificial-intelligence-surveillance-personal-datacctv-privacy-cost-of-living","url_hash":"7050597c1dc81733bce7434cfc8b2307bff5b4ad","author":"","summary":"Seattle ban on AI-driven grocery pricing sparks warnings of lost discounts from retailers KOMO","content":"Seattle ban on AI-driven grocery pricing sparks warnings of lost discounts from retailers\nSEATTLE — City leaders in Seattle are taking aim at what they call a hidden threat to people’s grocery bills.\nThe Seattle City Council has approved a first-in-the-nation ban on what some refer to as surveillance pricing. 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The ordinance preserves traditional coupons and transparent discounts, including those offered to seniors, veterans or loyalty-program members.\nCouncilmember 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.\nA 2025 Consumer Reports investigation found that algorithmic pricing at major retailers resulted in price differences of up to 23% for the same groceries.\nPREVIOUS COVERAGE | POLL: Do you worry a ban on surveillance pricing will cause you to pay more for groceries?\nThe ordinance applies to grocery chains with at least 20 locations worldwide and includes delivery services. 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The new law, passed on Tuesday, prohibits major grocers from using artificial intelligence and shoppers’ personal data to set individualized prices.\nGrocers warn the new law could put customer discounts at risk.\nThe 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.\nThe 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.\nRetailers 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.\nCouncilmember 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.\nA 2025 Consumer Reports investigation found that algorithmic pricing at major retailers resulted in price differences of up to 23% for the same groceries.\nPREVIOUS COVERAGE | POLL: Do you worry a ban on surveillance pricing will cause you to pay more for groceries?\nThe ordinance applies to grocery chains with at least 20 locations worldwide and includes delivery services. 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