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Algorithmic-based price discrimination (CB 121267)

At a glance

  • What: Ordinance establishing restrictions on algorithmic-based price discrimination by covered retailers, including large grocery chains and delivery services. Defines algorithmic-based price discrimination as setting, altering, or manipulating prices based on consumer behavior, location, demographics, biometric data, or personal information.
  • Definition: "Algorithmic-based price discrimination" includes random price variations to different consumers but excludes prices based on delivery costs, physical-store location, manufacturer coupons, loyalty/membership programs (with limitations), and broadly-defined consumer groups.
  • Coverage: Applies to grocery businesses with 20+ global locations, mixed-use groceries, and delivery service providers.
  • Restrictions: Covered retailers cannot increase prices above bona fide market price using algorithmic discrimination for groceries, diapers, hygiene products, or OTC drugs.
  • Disclosure: Retailers must clearly disclose whether personal information was used in setting discounted prices.
  • Compliance: Retailers must retain records documenting compliance; Director may issue implementation rules.
  • Accountability: Annual reporting on grocery prices in Seattle vs. neighboring cities (Bellevue, Burien, Issaquah, Kirkland, Renton, Shoreline) and loyalty program availability.

Involved

  • Hollingsworth - Council President
  • Rinck - Opposed final passage
  • Kettle - Proposed multiple amendments
  • Foster - Opposed final passage

Sources

Amendments and Votes

Amendment 1 (Kettle/Rivera motion to restrict record-keeping and pricing data restrictions): Failed 2-7 (In favor: Kettle, Rivera; Opposed: Foster, Hollingsworth, Juarez, Lin, Rinck, Saka, Strauss).

Amendment 2 (Hollingsworth/Lin motion to add motor fuel loyalty discount exception): Passed 8-1 (In favor: Foster, Hollingsworth, Juarez, Kettle, Lin, Rivera, Saka, Strauss; Opposed: Rinck).

Amendment 3 (Kettle/Rivera motion to modify eligibility and purchase history language): Failed 2-7 (In favor: Kettle, Rivera; Opposed: Foster, Hollingsworth, Juarez, Lin, Rinck, Saka, Strauss).

Amendment 4 (Kettle/Rivera motion to define electronic shelf label systems): Failed 3-6 (In favor: Kettle, Rivera, Saka; Opposed: Foster, Hollingsworth, Juarez, Lin, Rinck, Strauss).

Amendment 5 (Kettle/Rivera motion to reduce record-retention period from 3 years to 1 year): Failed 2-7 (In favor: Kettle, Rivera; Opposed: Foster, Hollingsworth, Juarez, Lin, Rinck, Saka, Strauss).

Amendment 6 (Kettle/Rivera motion to add state law preemption clause): Failed 2-7 (In favor: Kettle, Rivera; Opposed: Foster, Hollingsworth, Juarez, Lin, Rinck, Saka, Strauss).

Amendment 7 (Hollingsworth/Lin motion to add annual grocery price analysis requirement): Passed 7-2 (In favor: Hollingsworth, Juarez, Kettle, Lin, Rivera, Saka, Strauss; Opposed: Foster, Rinck).

Final Passage: 7-2 (In favor: Foster, Hollingsworth, Juarez, Lin, Rinck, Saka, Strauss; Opposed: Kettle, Rivera).

Log

  • 2026-09-22 - City Council

    Ordinance passed with amendments. Hollingsworth and Lin advanced the grocery price reporting amendment after Kettle and Rivera proposed multiple restrictions on data collection and pricing methods. Foster and Rinck opposed final passage despite supporting the core measure.