This Act prohibits retail food stores from engaging in surveillance-based price setting, imposing limits on price gouging, and mandating non-digital price displays.
Ben Luján
Senator
NM
The Stop Price Gouging in Grocery Stores Act of 2026 prohibits retail food stores from charging grossly excessive prices and bans the use of surveillance technology to set customized prices for individual consumers. The law mandates that all prices must be displayed using clear, non-digital methods like physical labels, and it grants the Federal Trade Commission (FTC) authority to enforce these provisions. Violators face significant civil penalties, and consumers are granted the right to sue for damages.
Grocery Stores Face Ban on Personalized Pricing and Digital Tags Under New Stop Price Gouging Act
The Stop Price Gouging in Grocery Stores Act of 2026 aims to end the era of 'personalized' pricing where the cost of your milk might depend on your browsing history. This bill explicitly prohibits retail food stores from using surveillance-based price setting—essentially banning the use of facial recognition or your personal data to hike prices for specific customers. Under this legislation, grocery stores must return to traditional, non-digital price displays like stickers or shelf tags, ensuring the price you see when you walk in is the same price everyone else sees at the register. It also sets a hard line against 'grossly excessive' prices, potentially defining them as anything 20% higher than the average market rate over the previous six months.
The End of the Digital Price Tag
If you shop at a large grocery chain (anything over 10,000 square feet), expect to see a return to the basics. Section 5 of the bill bans electronic shelf labels—those tiny digital screens that can change prices in a heartbeat—and mandates physical signs or stickers. For a busy parent or a construction worker grabbing a quick lunch, this means no more 'surge pricing' for a sandwich just because it’s noon. While stores can still offer uniform discounts for groups like seniors, students, or veterans, they can't use your personal data to target you with a higher price than the person standing behind you in line. The goal is simple: what you see is what you get, regardless of who you are or what’s in your digital profile.
Privacy at the Produce Aisle
The bill takes a swing at the growing use of high-tech surveillance in retail. If a store wants to use facial recognition technology, Section 4 requires them to post clear, plain-language signs at the entrance telling you exactly why they’re using it. If they want your biometric data—like a fingerprint for a 'pay-with-your-palm' system—they have to get your written consent and are strictly forbidden from selling that data to third parties. For the average shopper, this creates a 'digital wall' between your grocery list and the data brokers who track your habits, though it does grant the FTC significant power to decide which 'other factors' might still allow for price differences.
Holding the Line on Hikes
Enforcement is where this bill gets some teeth. If a store is caught price gouging, the FTC can slap them with a $50,000 fine per violation. But it’s not just up to the government; Section 6 gives you, the consumer, the right to sue. If you can prove a store willfully violated these rules, a court must triple your damages and cover your legal fees. This is a massive shift for the average worker who usually has no recourse against a giant corporation. However, there is a loophole: stores can defend price hikes if they can prove the costs were 'out of their control,' like a sudden supply chain spike or a natural disaster. This means the FTC will have to be the referee in deciding when a price jump is a legitimate business cost versus a cash grab.