Groceries are more expensive than ever, and algorithms setting prices could make it even worse. If companies are allowed to set individual prices based on the personal information they collect about us, everyone could end up paying more, when we already feel the squeeze. We’re committed to work with labor, business, community advocates, and City Council to make our city more affordable, while also protecting people against the potential abuse of new technology. One initial step is to ban algorithms setting prices based on information they collect about you so prices for essential goods like groceries are fair and transparent. That way everyone knows what they’re paying, what they’re getting, and why.
What the policy does:
Our proposed policy supports fair and transparent pricing by preventing companies from setting different prices for different people based on how they how they’ve profiled who you are, where you go, or what you do online. The proposed policy provides that:
- Prices can’t be modified based on personal information such as employment, purchase patterns, search history, algorithmic profiles, or other similar data.
- Prices must be clearly posted and publicly available.
- General discounts are protected, as long they’re open and transparent.
- Discounts can be offered to everyone, or made available to people who are seniors, students, teachers, veterans, or members or another broadly-defined group.
- Loyalty programs are allowed to offer discounts to members based on their purchase history.
What it covers:
Our proposed policy is focused on ensuring fair and transparent pricing at big stores where people buy groceries and other essential goods. The proposed policy:
- Applies to all goods sold at big grocery stores over 10,000 square feet, and third-party services which deliver from such stores.
- Applies to the sale of essential goods like groceries, diapers, grooming & hygiene products, and over-the-counter drugs at big box stores over 85,000 square feet which use 30% or more of their retail space for groceries.
- Clearly specifies that companies are allowed to set prices however they wish, offer coupons and discounts, and maintain loyalty or membership programs.