Large grocery corporations and retailers want to feed customer data to an AI system so they can charge individual shoppers different prices for the same items.
A Consumer Reports investigation revealed that this scheme, called surveillance pricing, could raise grocery bills for an average-sized family in Seattle by $1,200 per year.
Grocers have already experimented with this technology, and some say they want to bring it into stores. Corporations are moving faster than policymakers, so Seattle must set rules now—before this becomes standard practice.
Send your letter to the city council nowSurveillance Pricing Is Discriminatory
This predatory practice feeds AI your data—such as your internet browsing history, when you typically shop, and how long you shop—so an algorithm can set the highest price it thinks you will pay.
For instance, a store could charge one mother more than another for the exact same gallon of milk because an algorithm used her data to predict that she has less time to comparison shop.
Two people buying the same item in the same store at the same time should pay the same price.
Your Discounts Are Safe
Contrary to industry talking points, the Fair Pricing and Transparency Ordinance protects the discounts and loyalty programs you already use, including discounts for broadly recognized groups, such as seniors or veterans; loyalty-program discounts offered on equal terms; publicly disclosed discounts; promotional discounts; and volume discounts.
Kroger, which owns QFC and Fred Meyer, told investors this year that 95% of its transactions are tied to a loyalty card. So when industry lobbyists ask Seattle to exclude loyalty programs from the ordinance, they are asking for a loophole that could apply to nearly every purchase.
The ordinance does not require grocers to eliminate discounts or reduce anyone’s savings. Rather, the bill prevents companies from feeding AI personal data to charge different customers different prices for the same item.
Public promotions, loyalty rewards offered on equal terms, group discounts, and other discounts permitted by the ordinance remain protected.
Ask yourself: Would grocery corporations spend millions of dollars on AI tech so they can make less money?
Tell the Seattle City Council: NO AI PRICE HIKES IN OUR STORES
