This legislation aims to protect consumers by prohibiting certain pricing and data collection practices by retail food stores. It specifically targets price gouging and the use of surveillance-based methods for setting prices. The bill seeks to ensure fair pricing and consumer privacy in grocery transactions. The Act prohibits retail food stores from selling items at a grossly excessive price , with an affirmative defense if the price increase is directly due to uncontrollable, incurred costs. The Federal Trade Commission (FTC) is tasked with defining "grossly excessive price," considering a threshold of 120 percent or more of the average price over the preceding six months. This provision aims to prevent exploitative pricing practices, especially during times of market volatility. Furthermore, the bill bans surveillance-based price setting , which involves adjusting prices based on a consumer's personal information, including data from facial recognition technology. Exceptions are made for price differences based on reasonable costs, publicly disclosed group discounts, or uniform discounts where personal information is used solely for administering the discount. The use of biometric data is permitted only with explicit written consent, clear disclosures, and a prohibition on selling or sharing such data with third parties. The bill also prohibits retail food stores larger than 10,000 square feet from using electronic shelf labels , requiring them to display prices non-digitally. Stores employing facial recognition technology must provide clear and conspicuous signage at their main entrances to inform consumers of its use and purpose. These measures aim to enhance transparency and limit dynamic pricing based on real-time data. Enforcement of these provisions falls under the purview of the Federal Trade Commission , which can treat violations as unfair or deceptive acts. State attorneys general can also bring civil actions, and consumers are granted a private right of action to seek damages, injunctions, and other relief, with increased awards for willful violations. The bill clarifies that it does not preempt state laws that offer greater consumer protections.
This legislation aims to protect consumers by prohibiting certain pricing and data collection practices by retail food stores. It specifically targets price gouging and the use of surveillance-based methods for setting prices. The bill seeks to ensure fair pricing and consumer privacy in grocery transactions. The Act prohibits retail food stores from selling items at a grossly excessive price , with an affirmative defense if the price increase is directly due to uncontrollable, incurred costs. The Federal Trade Commission (FTC) is tasked with defining "grossly excessive price," considering a threshold of 120 percent or more of the average price over the preceding six months. This provision aims to prevent exploitative pricing practices, especially during times of market volatility. Furthermore, the bill bans surveillance-based price setting , which involves adjusting prices based on a consumer's personal information, including data from facial recognition technology. Exceptions are made for price differences based on reasonable costs, publicly disclosed group discounts, or uniform discounts where personal information is used solely for administering the discount. The use of biometric data is permitted only with explicit written consent, clear disclosures, and a prohibition on selling or sharing such data with third parties. The bill also prohibits retail food stores larger than 10,000 square feet from using electronic shelf labels , requiring them to display prices non-digitally. Stores employing facial recognition technology must provide clear and conspicuous signage at their main entrances to inform consumers of its use and purpose. These measures aim to enhance transparency and limit dynamic pricing based on real-time data. Enforcement of these provisions falls under the purview of the Federal Trade Commission , which can treat violations as unfair or deceptive acts. State attorneys general can also bring civil actions, and consumers are granted a private right of action to seek damages, injunctions, and other relief, with increased awards for willful violations. The bill clarifies that it does not preempt state laws that offer greater consumer protections.