Seattle votes to ban AI 'surveillance pricing' on groceries

Seattle just became the first US city to ban stores from using your personal data to jack up grocery prices.

The Seattle City Council passed the Fair Pricing and Transparency Act (CB 121267), sending the bill to Mayor Wilson for signature. Backed by Consumer Reports, the legislation stops retailers from using your location, search history, or estimated income to alter what you pay for essential goods. Standard discounts and promotions are still legal, but profiling shoppers to charge personalized prices is out.

Why it matters: Algorithmic pricing can quietly charge two people different amounts for the exact same item at the exact same time. A Consumer Reports investigation into Instacart found algorithmic price differences as high as 23%, costing families over $1,200 extra per year. A separate check on Kroger revealed the grocery giant compiled a 62-page personal data profile on a single shopper.

Know this: Maryland, Connecticut, and New Jersey have passed similar state laws, but Seattle is the first city to act.

Expect more local governments to take a bite out of algorithmic price gouging soon.