The price of everyday essentials is leaving shoppers frustrated.
“Groceries are ridiculously high,” said Mary Mueller in Minneapolis. “I don’t see any end in sight.”
Customers are responding negatively to the idea that surveillance pricing could be adding to the cost.
“If they’re doing that with groceries, that’s honestly just heartbreaking,” said Ziyah Xzandra in Minneapolis.
State lawmakers are now working to ban the practice in food retail establishments. A Senate bill defines surveillance pricing as setting a customized price for a specific consumer, or group of consumers, based on consumer data collected through electronic surveillance technology.
“We shouldn’t let the desire for more profits and the ability to extract as much as possible from us be another reality for Minnesotans for why prices are increasing,” said Sen. Lindsey Port, one of the bill’s authors.
The legislation would also ban electronic shelving labels.
“Because we know it just makes it much easier and possible to use surveillance pricing,” she said.
Port expects enforcement of the proposed law will rely on watchdog Minnesotans and the Attorney General’s Office.
“We just need to put those protections into law so that when Minnesotans do see this at their grocery stores, there’s an outlet for them,” she said.
Minnesota Retailers raised concerns during a committee hearing Friday morning that the bill could limit targeted promotions and rewards that actually save customers money. Will Hagen, with the organization, said the idea that stores raise prices for individuals, “does not reflect how today’s market operates.”
Dr. Manjeet Rege, director of the Center for Applied Artificial Intelligence at the University of St. Thomas, told 5 EYEWITNESS NEWS there are multiple ways consumers can reduce the risk of paying more due to surveillance pricing.
“What consumers can do first of all is limit the loyalty app usage,” said Rege. “The more information you’re volunteering about yourself, about your personal preferences, past history, the more information the store has.”
He also suggests checking out as a guest online, clearing cookies and browsing in incognito mode. It’s also always a good idea to compare prices.
“Always be cautious, be skeptical about personalized offers,” said Rege. “Many times it may not be for your own benefit, it might be for the benefit of the store selling product to you.”
The Senate bill was advanced for possible inclusion in an omnibus bill.
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