Grocery prices are already out of control, and now grocery store corporations want to implement a new, dystopian pricing scheme to make things worse. That system is called "surveillance pricing," and a Consumer Reports investigation shows it could lead to even higher prices at the register and headaches for everyone except for the corporations that stand to rake in profits at the expense of workers and shoppers. To protect our wallets and our sanity, the Seattle City Council must pass a strong, enforceable ban against this predatory practice with no corporate loopholes.
Seattle's legislation, which was introduced by Mayor Katie Wilson, already protects the discounts that our customers — including my fellow co-workers — rely on. Let's keep it that way.
Surveillance pricing works by running personal data through AI software to charge different shoppers different prices for the same product in the same store. That's a recipe for increased tension at the till. My years working checkout taught me that customers watch prices closely, especially in recent years as food prices climbed. Sometimes I'd greet shoppers with a smile only to watch them nod at me and then stare at my screen as I rang them up, making sure they got the prices they were hunting for. And if they didn't, they'd let me know.
If we allow corporations to impose surveillance pricing on groceries, believe me, customers will find out that they're paying more than someone else for the same item. That will put workers like me in the position of having to explain to confused and understandably frustrated customers that some algorithm in a black box decided they should pay more than someone else, which makes our work that much harder. I want to deliver great customer service, not bad tech support.
And let's not forget: Grocery store workers are grocery store shoppers, too. Surveillance pricing could increase grocery costs for Seattle families by about $100 per month. I don't even spend $100 per month on groceries right now, so I definitely don't have an extra $100 per month to hand over to giant grocery corporations.
The grocery industry appears to understand that hiking food prices based on personal data, such as internet browsing history, time spent in stores, and demographic information, creeps out your average customer. Rather than defend the predatory practice outright, the industry is lobbying the Seattle City Council now to allow corporations to use it when offering so-called "discounts" through loyalty programs and the like. Given the fact that Kroger told investors that 95% of grocery store transactions occur through loyalty programs, what they're really asking for is a loophole that will render the entire ordinance useless.
Grocery companies should apply discounts fairly and transparently. They shouldn't get to set the price wherever they want and then use an algorithm that knows more about my personal habits than my only family does to offer me a "discount" that might be skimpier than the "discount" my neighbor was offered.
Some industry lobbyists also want to strip the bill's core enforcement mechanism: a private right of action. A private right of action allows customers to sue grocery giants if they break the law. Removing this vital protection would leave only the City's relatively small, cash-strapped law department to prosecute massive, national companies if they violate the law. A right you can't enforce isn't a right at all. Seattle should keep the private right of action to give families a real pathway to justice.
So often, governments see reports of a bad thing coming down the pike, do little or nothing about it, and then spend billions trying to clean up the mess. For once, let's stop the bad thing from happening before it starts in earnest. Ban surveillance pricing without any corporate carve-outs, and help promote fair, transparent, and affordable groceries for all Seattleites.
Kristen Wilder is a grocery store worker in Seattle. Wilder's union, UFCW 3000, has been a key backer of the legislation.
We're building a newsroom rooted in community, not corporate backing. Help us raise funds to hire our first-ever full-time reporter and grow our capacity to cover the South End. Donate today.