Seattle City Council Bans AI-Powered Grocery Pricing

Serdar HocamAuthor & Editor

The Seattle City Council approved the Fair and Transparent Pricing bill, banning the use of artificial intelligence and personal data to determine individual grocery prices.

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Seattle ban on AI-driven grocery pricing sparks warnings of lost discounts from retailers

Seattle city leadership has approved the first regulation of its kind banning major grocery chains with at least 20 locations worldwide and delivery services from using artificial intelligence and personal data to set personalized prices for customers.

Fair and Transparent Pricing Act

Seattle city leaders have approved a new regulatory measure, a first nationwide against a practice referred to as surveillance pricing. With this decision, major chain supermarkets are prevented from using artificial intelligence technologies to engage in personalized pricing.

Criteria Under the Ban

This approved decision covers large-scale grocery chains and delivery platforms with at least 20 locations worldwide. Convenience stores, farmers markets, and small-scale local businesses are excluded from this regulation.

Prevention of Personal Data Usage

With the new regulation, the use of personal data such as race, gender, employment status, location, browsing history, and social media activities to determine shopping prices is prohibited. The initiative aims to prevent companies from manipulating prices through these data.

Preservation of Existing Discounts and Coupons

Within the scope of the legal text, traditional coupons and transparent discounts offered to seniors, veterans, and loyalty program members continue to be protected. Businesses are required to display prices clearly and make them equal for all customers.

Warnings from the Retail Sector

Retail industry representatives, on the other hand, warn that the new policy is untested and could jeopardize personalized discounts, savings programs, and loyalty opportunities that consumers rely on.