Trouble ahead for Costco and Walmart? New York bill seeks to curb supermarket price hikes

New Yorkers have been feeling the strain of rising grocery and gasoline prices. Supermarkets have increased the cost of everyday essentials, leaving many families struggling to make their budgets stretch further.

In response to the challenges facing residents of New York City, lawmakers have introduced a new bill that, if approved, would prevent recurring price increases at grocery stores.

The proposal designed to slow grocery price increases

In mid-May, New York City Council Speaker Julie Menin and Majority Leader Shaun Abreu introduced two consumer protection bills aimed at restricting dynamic pricing practices and limiting the use of consumer data.

The legislation would establish safeguards around dynamic pricing in supermarkets and prohibit businesses from using consumers’ personal data to set individualized prices.

If approved, the first bill would prevent supermarkets from raising the price of an item more than once within a 24-hour period. According to a statement from the New York City Council, this would allow businesses to make daily adjustments based on market conditions while preventing more frequent price changes that could artificially inflate the cost of essential goods.

The second proposal seeks to ban surveillance-based pricing practices by prohibiting companies from using personal consumer data to determine individualized rates, prices, and discounts.

Shaun Abreu: “Corporations have algorithms and AI. Shoppers have a cart and a budget”

“New Yorkers deserve transparency and fairness when purchasing essential goods, and the Council will make New York the first city in the country to take a strong stand against predatory surveillance and exploitative dynamic pricing practices,” said Council Speaker Julie Menin.

“Corporations have algorithms and AI. Shoppers have a cart and a budget. We are acting now to protect New Yorkers before the technology gets ahead of the law. By regulating dynamic pricing in grocery stores we’re ensuring that a basic need isn’t used as leverage against the people who can least afford it. Groceries are already expensive enough, and nobody should have to worry about the price going up when they’re still shopping,” added Majority Leader Shaun Abreu.

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