North Carolina joins states targeting grocery price discrimination practices
RALEIGH — North Carolina lawmakers are joining a growing movement to prevent grocery stores and retailers from using personal data to charge different customers varying prices for identical products.
State legislators are considering measures to crack down on algorithmic pricing practices that analyze shoppers’ purchasing history, location data, and demographic information to set individualized prices. This practice, known as dynamic or personalized pricing, has raised concerns about potential discrimination against vulnerable populations.
“Consumers deserve transparency and fairness when they shop for essentials,” said Rep. Sarah Johnson, who is drafting legislation to address the issue. “No one should pay more for milk or bread simply because of where they live or what their shopping patterns reveal about their financial situation.”
How Data-Driven Pricing Works
Retailers increasingly use sophisticated algorithms that combine loyalty card data, mobile app usage, and purchase history to create detailed customer profiles. These systems can adjust prices in real-time, potentially showing different costs to different shoppers for the same item on the same day.
Consumer advocacy groups report that this technology allows stores to identify price-sensitive customers and offer them discounts while charging premium prices to shoppers deemed less likely to comparison shop. The practice extends beyond traditional brick-and-mortar stores to online grocery platforms and delivery services.
Privacy experts warn that retailers can access extensive personal information, including income estimates, family composition, and shopping frequency, to optimize their pricing strategies. This data often comes from third-party brokers who compile information from various sources.
Legislative Response Gaining Momentum
North Carolina’s proposed legislation would require retailers to disclose when they use personal data for pricing decisions and mandate that promotional prices be available to all customers meeting clearly stated criteria. The bill would also establish penalties for discriminatory pricing practices that disproportionately affect protected groups.
Similar measures have advanced in Connecticut, Illinois, and Minnesota, according to the National Conference of State Legislatures. Federal lawmakers have also introduced bills to address algorithmic pricing, though comprehensive national legislation remains stalled in Congress.
The North Carolina Retail Merchants Association has not yet taken a public position on the proposed legislation. Industry representatives in other states have argued that personalized pricing allows them to offer targeted discounts and improve customer service.
Consumer Protection Concerns
State Attorney General Josh Stein’s office has received dozens of complaints about pricing inconsistencies at major grocery chains over the past year. Officials say investigations revealed instances where customers shopping at the same store location were quoted different prices through mobile apps or loyalty programs.
“We’re seeing cases where families in lower-income neighborhoods face higher prices for basic necessities,” said Assistant Attorney General Maria Rodriguez. “This creates an unfair burden on communities that can least afford it.”
Consumer groups emphasize that the practice affects essential purchases like food, medicine, and household items rather than luxury goods. They argue that algorithmic pricing in grocery retail represents a significant shift from traditional uniform pricing models.
The proposed North Carolina legislation is expected to receive committee consideration next month. Supporters say they have bipartisan interest in addressing consumer protection concerns while allowing retailers to maintain legitimate promotional programs.
Sources: NC Newsline
