Senators Ben Ray Luján from New Mexico and Jeff Merkley from Oregon have introduced a new bill aimed at curbing unfair pricing practices in grocery stores. This legislation, called the Stop Price Gouging in Grocery Stores Act of 2026, mirrors a similar bill from the House that was proposed in 2025.
The bill addresses two major issues: the use of facial recognition technology and electronic shelf labels (ESL) in large grocery stores. ESLs allow stores to change prices remotely, which raises concerns about potential price discrimination based on algorithms. For instance, retailers might charge different prices based on the time of day or even the identity of the shopper detected by facial recognition software. Advocates worry that this could lead to unfair pricing based on race, gender, or income level.
A 2025 study found that Instacart charged some customers up to 23% more for the same products. After this was publicized, the company decided to discontinue its AI-driven pricing strategy.
Senator Luján highlighted the importance of this bill, stating, “With rising costs, we must ensure that technology improves lives, not makes groceries more expensive.” His concern reflects a broader trend of rising food prices, worsened by factors like previous trade wars and cuts to food assistance programs.
At least six states have proposed similar legislation against surge and surveillance pricing. The United Food and Commercial Workers International Union (UFCW) has been active in this fight, even launching a short video campaign to raise awareness of the issue.
Experts note that while it’s unclear how many grocery stores currently employ these pricing tactics, legislators want to act before they become widespread. Washington State Representative Mary Fosse expressed this sentiment, underscoring the fundamental belief that shoppers should pay the same price for identical items in the same store.
The Biden administration launched an investigation into surveillance pricing in 2024, with the Federal Trade Commission exploring its impact on consumers. However, following President Trump’s return to power in 2025, the initiative was abruptly halted.
Public backlash against surge pricing has been evident. For example, in 2024, Wendy’s faced significant consumer outcry after floating the idea of implementing surge pricing. The backlash was so severe that the company quickly distanced itself from the concept, despite hints that it was exploring dynamic pricing models.
Given that many Americans are currently feeling the squeeze of rising food costs, these discussions resonate deeply. UFCW President Milton Jones has emphasized the urgency of addressing these challenges, noting the visible pain on consumers’ faces in grocery stores. He has called for a campaign to ensure fair practices so that no one is charged more simply based on their circumstances, whether it be where they live or their personal situation.
In summary, as food prices rise, the fight against unfair pricing strategies in grocery stores is intensifying, with strong support from legislators and advocacy groups. The goal is clear: fairness at the checkout line for everyone. For more insights on price gouging, you can check resources from the UFCW here.
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AI,Artificial intelligence,surge pricing,surveillance pricing
