Seattle City Council Bans AI-Powered Grocery Pricing

The Seattle City Council has passed a new regulation banning large grocery stores from using artificial intelligence and personal data to determine individual pricing.

Approval of the New Regulation

During a session held on Monday, the Seattle City Council announced that it has adopted a new ordinance banning personalized surveillance pricing.

Entitled the Fair and Transparent Pricing bill, the legislation passed the council with a 7-2 vote, completing the approval process.

Practices Covered by the Ban

The newly approved law aims to prevent major online and physical supermarkets from implementing customer-specific pricing.

Data such as individuals' race, gender, location, search history, and social media activities cannot be used to determine prices.

Rationale and Research Findings

Council members who spearheaded the development of the bill want to prevent companies from manipulating the prices of essential goods using confidential data.

Research has revealed that algorithmic pricing methods create price disparities of up to 23 percent for identical products.

Retailers' Concerns

Major supermarkets and industry representatives state that this new legal regulation could jeopardize loyalty programs and customer discounts.

Major chains like Safeway argued that personal data is used for voluntary savings programs rather than high prices.