{"id":407786,"date":"2026-07-22T10:28:30","date_gmt":"2026-07-22T10:28:30","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/407786\/"},"modified":"2026-07-22T10:28:30","modified_gmt":"2026-07-22T10:28:30","slug":"california-grocery-bill-could-kill-coupon-programs-advocates-warn","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/407786\/","title":{"rendered":"California grocery bill could kill coupon programs, advocates warn"},"content":{"rendered":"

Legislation pushed by a Democratic lawmaker could hurt Californians struggling with the cost of living even more<\/a> by doing away with grocery discounts, opponents are warning.<\/p>\n

Grocery stores and retailers beefed up their opposition<\/a> this month and launched a campaign to derail a bill, AB 2564<\/a>, that would essentially prohibit surveillance pricing. Surveillance pricing is when personal data is used to charge someone different prices.<\/p>\n

Personal information gathered through apps, web browsing history, and data brokers can inform pricing algorithms, for instance, on income bracket or shopping behavior of a consumer.<\/p>\n

Ralph\u2019s offers discounts. Getty Images<\/p>\n

This is at least the second attempt by Assemblymember Chris Ward to crack down on the practice. He withdrew a similar bill<\/a> last year, but this year, his push is seeing momentum <\/a>across the nation as affordability becomes a key issue for voters.<\/p>\n

Backers of the legislation say that banning the practice will protect consumers from higher prices.<\/p>\n

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\u201cThe last thing anyone needs is to be charged higher prices based on their personal data,\u201d said Ward in March.<\/p>\n

\u201cThis practice hits hardest for low-income individuals and shoppers and those with limited shopping options.\u201d<\/p>\n

However, grocery stores say the idea will backfire, claiming there will be fewer discounts and choices for Californians. Personalized loyalty programs and discounts rely on that same type of data gathering.<\/p>\n

Personalized grocery prices could be affected under the new bill. AFP via Getty Images<\/p>\n

\u201cFamilies are stretching every dollar right now. The last thing they need is Sacramento making that harder,\u201d said Rachel Michelin, president of the California Retailers Association.<\/p>\n

\u201cFamilies are already dealing with higher prices almost everywhere they turn. They rely on weekly specials, digital coupons, and loyalty programs to stretch their household budgets,\u201d she added. \u201cThis is a solution looking for a problem, and it moves California in exactly the opposite direction of affordability.\u201d<\/p>\n

The legislation does provide some exceptions to the ban, such as if the discounted price is \u201cpublicly available\u201d. <\/p>\n

If the discounted price is based on collected digital data, it would have to be based on \u201cpublicly disclosed criteria\u201d that anyone can meet \u2014 such as signing up for a newsletter, be given to a broad group such as teachers and not one individual, and it has to be through a rewards or membership program.<\/p>\n

\u201cFamilies are stretching every dollar right now. The last thing they need is Sacramento making that harder,\u201d said Rachel Michelin, president of the California Retailers Association. California Retailers Association<\/p>\n

Those are hurdles, however, that will effectively discourage grocers from offering personalized discounts, critics said.<\/p>\n

\u201cAB 2564 creates a new legal framework that many businesses believe will be difficult to navigate. For large companies, that means higher compliance costs,\u201d the new opposition coalition Californians for Consumer Affordability said.<\/p>\n

\u201cFor many small businesses, it could mean deciding it\u2019s simply not worth the risk to continue offering certain discount programs.\u201d<\/p>\n

The retailers association argued the bill should only focus on prohibiting price increases and claimed they\u2019ve been unable to get their suggestions adopted.<\/p>\n

Ward said in a legislative hearing last month that he\u2019s continuing to have discussions around the issue and he also doesn\u2019t want to hurt discounted programs. The bill has until end of August to be sent to the governor.<\/p>\n

Consumer advocates like Consumer Reports said they\u2019ve pushed back because they don\u2019t want discounts to be a \u201cbackdoor\u201d to personalized pricing, which is why those transparency requirements are in place.<\/p>\n

\u201cWe wanted to make sure that we were not using certain language in the bill that was gonna create some kind of a backdoor opportunity where the way that they were able to afford discounts would still somehow and unintentionally be captured by the bill,\u201d Ward said. \u201cI don\u2019t want that either.\u201d<\/p>\n

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