Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Lower Grocery Prices Act prohibits retailers and food sellers from using algorithms and automated systems to set individualized prices based on personal information about consumers, a practice known as surveillance-based price setting. The bill affects grocery stores, food companies, and agricultural commodity sellers who currently use data-driven pricing strategies. The law allows some limited exceptions, such as transparent loyalty programs that customers voluntarily join, group discounts for seniors or veterans with clear eligibility rules, and price differences based on actual delivery costs, provided all these practices are publicly disclosed and uniformly applied. The Federal Trade Commission will enforce the law and can impose penalties, while consumers can sue companies for violations and potentially recover up to three times the damages if the violation was willful, along with attorney's fees. States' attorneys general can also bring enforcement actions on behalf of residents.
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