Controversial California grocery store bill could kill coupon programs, advocates warn

Legislation pushed by a Democratic lawmaker could hurt Californians struggling with the cost of living even more by doing away with grocery discounts, opponents are warning.Grocery stores and retailers beefed up their opposition this month and launched a campaign to derail a bill, AB 2564, that would essentially prohibit surveillance pricing.Surveillance pricing is when personal data is used to charge someone different prices.Personal information gathered through apps, web browsing history, and data brokers can inform pricing algorithms, for instance, on income bracket or shopping behavior of a consumer.This is at least the second attempt by Assemblymember Chris Ward to crack down on the practice.
He withdrew a similar bill last year, but this year, his push is seeing momentum across the nation as affordability becomes a key issue for voters.Backers of the legislation say that banning the practice will protect consumers from higher prices.California's top news, sports and entertainment delivered to your inbox every day.
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Never miss a story “The last thing anyone needs is to be charged higher prices based on their personal data,” said Ward in March.“This practice hits hardest for low-income individuals and shoppers and those with limited shopping options.”However, grocery stores say the idea will backfire, claiming there will be fewer discounts and choices for Californians.Personalized loyalty programs and discounts rely on that same type of data gathering.“Families are stretching every dollar right now.
The last thing they need is Sacramento making that harder,” said Rachel Michelin, president of the California Retailers Association.“Families are already dealing with higher prices almost everywhere they turn.They rely on weekly specials, digital coupons, and loyalty programs to stretch their househ...