Healthy Food Delivery : Why Seattle Banning ‘Surveillance Pricing’ in Grocery Stores is a Big Deal

Over the years, we’ve all gotten pretty used to paying for services with prices that fluctuate based on demand. Uber, DoorDash, hotel rooms, and airplane tickets all require vigilance if you want to snag the best price. And if you get caught needing one of these services in a time of high demand, you know you’re about to pay a steeper price than you probably should.

But how would you feel about dealing with the same kind of surge pricing at a grocery store? If you shop at certain major grocery stores across the United States, you already know the feeling. Many brick and mortar retailers, including Kroger, Target and Walmart, are all experimenting with what is called “surveillance pricing.” Basically, stores can use their shoppers’ personal info to set prices targeted to what they think shoppers are willing to pay.

Obviously, not everyone is okay with that idea. Surveillance pricing is facing pushback in many areas, most notably Seattle, Washington. This week, Seattle’s City Council voted to ban algorithm-based pricing, requiring that all grocery prices be “clearly posted” for all shoppers.

Here’s what we know about surveillance pricing, where the technology is headed and why public opinion is quickly shifting against it.

How Does Surveillance Pricing Work?

Every time we click something online, every time we make a digital purchase, every time we search for something on the web, we build out a little more of our individual online profile. Companies are tracking your information. Some of them are selling that info to other companies, who can then use it to either pull you in as a customer or keep you spending money on their service.

And if you think that’s dramatic, this is from a 2025 FTC report on surveillance pricing: “Staff found that consumer behaviors ranging from mouse movements on a webpage to the type of products that consumers leave unpurchased in an online shopping cart can be tracked and used by retailers to tailor consumer pricing.”

They’re not just tracking the actions you take online. They’re also watching the decisions you don’t make, the things you choose to go without. All of this builds a profile of you as a consumer, everything you want and crucially do not want. And one line in the FTC report is particularly eyebrow-raising:

“The staff perspective found that some 6(b) respondents can determine individualized and different pricing and discounts based on granular consumer data, like a cosmetics company targeting promotions to specific skin types and skin tones,” reads the report. “As one hypothetical outlined, a consumer who is profiled as a new parent may intentionally be shown higher-priced baby thermometers on the first page of their search results.”

That was based on evidence from a year ago. In that year, AI technologies had developed rapidly, becoming even more commonplace in everyday life. Soon, it may be too late to do anything about these pervasive and easily manipulated algorithms.

And that’s why “the Emerald City” is taking a stand. The Fair Pricing and Transparency Policy was approved after a 7-2 vote by the city council. Now, both online and physical stores in the city are prohibited from using the personal information of their shoppers to set prices.

Why Seattle Is Pushing Back

Algorithmic pricing has been a thing for years, so why is Seattle just now banning the practice in grocery stores? The city says it’s a matter of principle.

“Food is an essential good that’s getting more expensive all the time,” said Mayor Katie Wilson. “People have been clear: they don’t want their data fed into algorithms that decide how much they pay at the grocery store. Everyone deserves transparent pricing and equal treatment, not hidden systems that charge some shoppers more than others.”

This is not a spur-of-the-moment decision attempting to capitalize on a trendy headline, either. The ban has been in the works for months because it touches so many different parts of the community. Seattle collaborated with labor partners, community leaders and industry advocates to craft this band.

Seattle isn’t alone, either. Maryland, New Jersey and Connecticut have all passed laws prohibiting or limiting algorithmic pricing.

“Today’s vote demonstrates the immense power of working people standing together with the communities we serve,” said Sean Embly, Secretary Treasurer of UFCW, the largest local union in Washington State. “When we work together, we can protect our neighborhood stores from predatory practices that put profits over people.”

Local Support and Backlash Against Surveillance Pricing

But how do the people of Seattle feel about the ban? Based on reporting around the ban, it feels like public sentiment is positive about the decision.

“I don’t want them taking my data and telling me I’m going to have to pay more or less,” Cathy Allen, a Seattle resident, told local Seattle News KOMO.

Many Seattle residents were at the city council meeting and voiced their opinions.

“Surveillance technology shouldn’t be used to increase prices,” said Patrick McKeen, one such resident who spoke at the meeting.

Shoppers are not the only people voicing their support, either.

“Passing the strongest ban on AI-powered price-gouging on groceries feels historic. My coworkers and the customers we serve proudly stood together to stop the grocery industry from imposing this scheme here in Seattle,” said Seattle grocery store worker Kristen Wilder. “Today, that worked paid off for families who just want to know they’re paying a fair price and for workers who want to focus on customer service instead of defending some algorithm making decisions in a black box.”

There is some skepticism surrounding the enforcement of the ban, particularly when it comes to online shopping.

“LOL and how are they gonna enforce that on Amazon?” said Reddit user Haarzton on a thread discussing the ban. The tone is dismissive, but the core criticism, wondering how the city will enforce these new rules against tech giants like Amazon, is worth thinking about.

Still, this ban is at the very least giving us all a moment to pause and consider how much data we want driving our lives. Technology is a tool, and tools can be good or bad depending on how we choose to use them. Right now, Seattle is simply asking that we think twice before letting a formula decide how much we pay for our groceries.