A measure is moving through the California state legislature that would ban surveillance pricing in grocery stores, but grocers claim it comes at the expense of digital coupons and other loyalty app features.
Bill AB 2564 would prohibit surveillance pricing when retailers use personal data to charge different prices. Assemblymember Chris Ward has introduced the bill for the second time to stop the practice.
Grocers, however, say the same ban on access to personal data would prevent shoppers from using personalized loyalty programs and discounts.
The California Retailers Association says the measure is a solution looking for a problem, as families rely on weekly specials, digital coupons and loyalty programs to stretch their household budgets.
The association also points out the legislation does not include any exceptions for the ban.
The bill will expire in August if lawmakers cannot pass it and send it to Gov. Gavin Newsom.
Maryland became the first state to ban surveillance pricing in grocery stores. Under the Protection from Predatory Price Act, grocery stores must keep prices fixed for at least one business day and cannot use surveillance data in automated pricing systems to prevent surge pricing.
A similar measure has reached the desk of New Jersey Gov. Phil Murphy. The Fair Price Protection Act bans surveillance pricing, where retailers collect shopping habits, online activity and other behavioral information and use it to charge different people different prices for the same food items.