WATERTOWN, New York (WWNY) – New York state is considering legislation that would prohibit electronic price tags and surveillance pricing, as a major grocery workers union argues the technology allows retailers to raise prices on everyday necessities at a moment’s notice.
Electronic shelf tags function like traditional paper price tags but can be updated instantly — allowing a store to raise the cost of one item or put another on sale without manually changing labels.
Where the legislation stands
A bill banning surveillance pricing — the practice of using a customer’s private online browsing data to set individualized prices — has passed both the state Senate and Assembly and is awaiting the governor’s signature.
A separate bill prohibiting electronic pricing has passed the Senate but has not cleared the Assembly.
A union’s position
Officials with the United Food and Commercial Workers International Union said they oppose both practices.
“We’re trying to point out to people that groceries and food are a necessity, and companies shouldn’t be able to play with a necessity like this,” said Ademola Oyefeso, director of the Legislative and Political Action Department at the UFCW.
Oyefeso said the technology opens the door to frequent, real-time price increases.
“They’re using it as a way to be able to increase prices every single day, and if New York — the legislature — doesn’t stop it, milk will go from $2.99 to $5.99 depending on the time of day. On a hot day like it is right now, ice cream can be raised a dollar just because it’s 90 degrees instead of staying the normal price it is,” Oyefeso said.
UFCW officials also said digitized pricing threatens grocery store jobs.
A dissenting view
State Assemblyman Scott Gray said he wants to protect consumers but does not support all that the bills would do. Gray said consumers should remain alert when shopping and decide for themselves whether a price is acceptable.
“That’s all part of marketing — if they know that traffic is high, or if they know that people are going to be buying, say, a sort of beverage at that time in the afternoon and they want to offer discounts on that, that’s all part of what stores do,” said Gray (R. – 116th District).
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