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As grocers adjust their pricing practices to remain competitive, many consumers and politicians are raising concerns that dynamic pricing \u2014 or surveillance pricing, as critics refer to it \u2014 could put further strain on consumers\u2019 wallets.<\/p>\n
Last year saw more than 100 price transparency state bills introduced across 33 states and Washington, D.C., according to MultiState, a state and local government relations company. And the momentum behind efforts to bar grocers from using dynamic pricing has not slowed down in the new year.<\/p>\n
This push from states to establish price transparency legislation comes as more retailers equip their stores with electronic shelf labels that allow them to update prices quickly. Walmart, for example, announced earlier this month that it aims to bring ESLs to all of its locations within the next year.\u00a0\u00a0<\/p>\n
In February, the United Food and Commercial Workers International Union launched a national campaign to ban the \u201cpredatory practice of \u2018surveillance pricing,\u2019 target the encroachment of AI-driven technology in grocery stores, and deliver fair prices for families while preserving good, union grocery jobs.\u201d\u00a0<\/p>\n
Already, New York, Oklahoma, Washington state, Arizona, Nebraska, Maryland and Tennessee have introduced UFCW\u2019s surveillance pricing and ESL legislation, per the UFCW.\u00a0\u00a0<\/p>\n
The UFCW\u2019s campaign launched the same day Democratic Sens. Ben Ray Luj\u00e1n of New Mexico and Jeff Merkley of Oregon introduced the Stop Price Gouging in Grocery Stores Act of 2026 in the U.S. Senate, coming a few months after the introduction of companion legislation in the House. The UFCW said it endorses the proposed bills.<\/p>\n
Along with prohibiting dynamic pricing at grocery stores, the legislation would require grocers to disclose their use of facial recognition technology, ban ESLs in large grocery stores and call for establishment of an \u201cenforcement mechanism to hold corporations accountable,\u201d according to a press release from Luj\u00e1n.<\/p>\n
\u201cWith rising costs driven by President Trump\u2019s trade war and Republican cuts to SNAP, Congress must act to ensure that technologies are being used to improve the lives of Americans, not increase their grocery bills. Our friends, family, and neighbors should be able to shop at their local grocery store without worrying about predatory pricing,\u201d Luj\u00e1n said in a statement.\u00a0<\/p>\n
State-level battles over pricing<\/p>\n
Several state legislations are also taking aim at the new pricing practices, with some looking to halt it on a broad scale, while others are zeroing in on food and grocery retailers or even shelf display technology.\u00a0<\/p>\n
Earlier this month, the Tennessee House Banking and Consumer Affairs Subcommittee held a hearing to consider a bill that would ban food retail establishments over 15,000 square feet from using ESLs or any other digital shelf display technology as well as forbid personalized algorithmic pricing.<\/p>\n
Meanwhile, Maryland\u2019s recently announced Protection from Predatory Pricing Act takes a slightly different approach.\u00a0<\/p>\n
In January, Gov. Wes Moore unveiled the act as part of his legislative agenda for the 2026 Maryland General Assembly. The legislation, like Tennessee\u2019s, would prohibit food retailers from using consumer \u201csurveillance data\u201d to set individualized prices for goods or services. It would also require grocery stores to keep their prices fixed for at least one business day \u2014 a move aimed at retailers\u2019 adoption of ESLs.\u00a0<\/p>\n
The Maryland legislation went through a first Senate reading on Feb. 17 and has been referred to committee.<\/p>\n
New York has two recently introduced bills that would prohibit surveillance pricing practices. One bill focuses on banning the use of ESLs and directly tackles food retailers\u2019 surveillance pricing practices. On Monday, New York Attorney General Letitia James linked up with UFCW Local 1500 and other organizations to call for the passage of the two bills.\u00a0<\/p>\n
\u201cNew Yorkers are already feeling the effects of sky-high grocery bills. The last thing they need is corporations using AI to set individualized prices and squeeze them even further,\u201d UFCW Local 1500 President Robert Newell said in a statement.<\/p>\n
This isn\u2019t the first time grocers have faced political scrutiny over their pricing practices or adoption of pricing technology. During the summer of 2024, Kroger came under fire for its adoption of ESLs, with two U.S. senators calling on the grocer to provide further information and raising concerns that the technology allows stores to \u201ccalibrate price increases to extract maximum profits.\u201d Kroger, in response, said that the technology and other pricing practices aim to lower costs over time for customers.<\/p>\n
Grocers continue to defend that their use of ESLs and dynamic pricing practices allows them to offer value and a streamlined in-store experience for customers.\u00a0<\/p>\n
Walmart said earlier this month that bringing ESLs chainwide frees up workers to assist in-store shoppers as well as ensures accurate item costs are posted.\u00a0\u00a0<\/p>\n
\u201cBefore [digital shelf labels], that meant walking up and down aisles swapping out paper tags by hand. Now, associates manage planned price changes through a centralized Walmart system, making it easier to keep shelf prices accurate and aligned with what customers see at checkout,\u201d Walmart said in a press release.<\/p>\n","protected":false},"excerpt":{"rendered":"
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