Seattle City Council passes ban on algorithmic grocery pricing

The Seattle City Council has passed the Fair Pricing and Transparency Act, making Seattle the first city in the United States to prohibit surveillance pricing for groceries and other essential items. The legislation aims to prevent companies from using personal data—such as web-browsing history, real-time location, income inferences, and health conditions—to set individualized prices for different consumers.

The ordinance applies to large grocery retailers with more than 20 locations. While the bill preserves traditional discounts for specific groups like seniors and veterans, it seeks to curb algorithmic price discrimination. The law also establishes a legal pathway for consumers to sue if they are subjected to illegal algorithmic price gouging.

Supported by Consumer Reports, the measure follows investigations into how retailers use data profiles to infer consumer characteristics. The bill now moves to the Mayor’s office for signature.