SEATTLE — The Seattle City Council passed an ordinance banning surveillance pricing in a 7-2 vote.
The practice uses personal purchase history and algorithms to adjust and set prices for individual consumers.
The measure is trying to establish price controls that do not rely on personal shopping data or algorithmic tracking.
Research from Consumer Reports found that algorithmic pricing experiments caused price increases of up to 23% on certain products when artificial intelligence analyzed personal buying habits and that it could cost a family around $1,200 per year.
The debate during the meeting highlighted a conflict between loyalty discounts and data privacy.
One City Council member noted that traditional grocery loyalty programs saved him 21% on his weekly food bill.
He admitted he could afford the groceries and that the discount was not a huge cost benefit to him, but that it could be a major savings for some families.
Some grocery store advocates argued that the new ordinance could harm loyalty program discounts; council members maintained that grocery affordability should not require shoppers to surrender personal information.
Grocery store workers turned out in force at the council meeting to speak in favor of the measure and celebrated following the final vote.
Patrick McKeen, a Seattle resident who attended the meeting, voiced opposition to algorithm-driven pricing models.
“Surveillance technology shouldn’t be used to increase prices,” McKeen said.
Advocates at the meeting emphasized that many shoppers do not realize how targeted pricing mechanisms operate.
Nicole Baich, a council meeting attendee, addressed public awareness regarding retail pricing methods.
“People are drowning in information and sometimes checking out of current events,” Baich said. She also noted that “it’s not uncommon that consumers don’t know how the sausage is made or, in this case, the pricing.”
Baich also spoke about the financial pressure facing local families when purchasing essential goods.
“Economic hardship is very real; it hits every single one of us. We all need food, we all need utilities,” Baich said.
The UFCW 3000, which represents grocery store workers, also applauded the council’s vote to pass the surveillance pricing ban.
“Passing the strongest ban on AI-powered price-gouging on groceries feels historic. My coworkers and the customers we serve proudly stood together to stop the grocery industry from imposing this scheme here in Seattle,” said Seattle grocery store worker Kristen Wilder.
Consumer Reports, which studied the issue of surveillance pricing, also sent out a release right after the council’s vote.
“Nobody should pay more for basic necessities because a data broker is quietly collecting information about what they’re searching for online, what they hover over, what their income is, or where they go,” said Grace Gedye, senior policy analyst at Consumer Reports.
“The price you see shouldn’t be different based on who you are. Mayor Wilson and the City Council have made Seattle a leader on protecting shoppers from unfair grocery pricing tactics with this bill. We commend this work,” said Gedye.
Consumer Reports also said in its release that in May 2025, the consumer watchdog investigated Kroger’s consumer data and found that the company was collecting vast data profiles for individual shoppers, with inferences about their income, family size, education level, gender, and more. One shopper who requested their data under a state privacy law received a 62-page profile.
The council ordinance now heads to Seattle Mayor Katie Wilson for her signature.
©2026 Cox Media Group
