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Tlaib introduces “Stop Price Gouging in Grocery Stores” bill to Congress

A Metro Detroit Congresswoman has taken the lead on a federal bill meant to stop what she called “price gouging” that combines the technology of electronic shelf labels and personal data when prices are set. 

The “Stop Price Gouging in Grocery Stores Act,” also known as H.R. 4966, was introduced Tuesday by Rep. Rashida Tlaib, a Democrat representing Michigan District 12. The bill was co-signed by more than two dozen other Congressional representatives from states such as Indiana, Texas and Wisconsin; including Rep. Shri Thanedar, a Democrat representing Michigan District 13. 

Tlaib gave a press conference on Wednesday in Dearborn to discuss the bill. Those attending included United Food and Commercial Worker Local 876 President Dan Pederson. 

“The majority of Americans are stressed about rising grocery prices,” Tlaib said in her announcement. “While our neighbors struggle, corporate grocery chains are feeding customer data into algorithms to decide who can be charged more. Companies should not be allowed to use electronic labeling or your personal information to charge you a higher price. We need to ban corporate price gouging and surveillance pricing.” 

The bill directs the Federal Trade Commission to enforce a ban on price gouging by grocery stores. Specifically, H.R. 4966 says “an operator of a retail food store may not sell or offer for sale an item at a grossly excessive price” with a metric yet to be set. An example given in the bill text is 120 percent of the average price of the item during the past six months. After the price gouging range is defined, the bill would take the following steps: 

• Prohibit price gouging by in-person retail stores selling food. 
• Prohibit “surveillance-based price setting.” To explain, Tlaib said “companies should not be able to use your online history, past purchases, or location information to charge you a higher price.” 
• Allow discounts for certain customers as long as all those who meet the stated criteria get the discounted price. 
• Require retailers to disclose to customers any use of biometric data such as facial recognition technology. 
• Ban electronic shelf labels in stores larger than 10,000 square feet. Instead, those stores would be required to rely on a physical sticker, stamp or label that is attached to the item, shelf or sign. 

Milton Jones, president of the United Food and Commercial Workers International Union, said his labor organization is among those that have endorsed the bill. 

“With the cost of living continuing to rise, the last thing families need is price gouging at the supermarket,” Jones said. “Technologies like electronic shelf tags threaten to usher in a new era where the price of an item you pick up from the shelf can change within the amount of time it takes to walk to the register. 

“Even more concerning, customers could be charged different prices based on personal data like income, race, gender, and more. ‘Surveillance pricing’ is deeply unfair, potentially discriminatory, and must be banned. This legislation will protect consumers as well as the hardworking UFCW members who help families put food on the table each time they visit their local grocery store.” 

H.R. 4966 has been referred to the Committee on Energy and Commerce and to the Committee on the Judiciary.