Congress moves to ban algorithmic price gouging at grocery stores

What it does

This bill prohibits large grocery retailers and food delivery services from using personal data to charge different customers different prices for the same item (dynamic pricing). It requires online grocery sellers to disclose when items are out of stock or weighed for pricing, and mandates that delivery services get explicit customer approval before substituting ordered items. The FTC enforces violations as unfair trade practices.

Why we flagged it

The bill's core mechanism is straightforward: it bans algorithmic price discrimination in grocery retail and delivery services, with FTC enforcement. This is a direct consumer-protection measure, not a subsidy, deregulation, or narrow carve-out.

• Section 3 requires the Department of Labor to report on employment effects of electronic shelf labels—substantively unrelated to dynamic pricing prohibition.

What the text implies

• The bill defines 'covered entity' to include only food retailers of at least 15,000 sq ft, potentially exempting small grocers and farmers markets from the dynamic pricing ban—creating a competitive advantage for large chains that comply.
• The 'personal data' definition is broad ('any information linked or reasonably linked to an identified consumer'), which may capture location data, purchase history, and device identifiers—expanding the scope of what retailers cannot use for pricing.
• Promotional and loyalty-program pricing are explicitly exempted, meaning retailers can still segment customers via opt-in programs, potentially recreating price discrimination through consent mechanisms.
• The bill does not address algorithmic pricing based on aggregate demand, inventory levels, or time-of-day—only personal-data-driven pricing—leaving other forms of dynamic pricing legal.
• The Department of Labor reporting requirement on electronic shelf labels may signal future legislative interest in automation's labor impact, but is disconnected from the bill's stated purpose.

Who it affects

Ordinary consumers gain protection against algorithmic price discrimination based on their personal data, and receive clearer disclosure about product availability and substitutions. The bill reduces information asymmetry and prevents retailers from exploiting behavioral data to charge vulnerable customers more for identical goods.

Who stands to gain

• consumers (reduced price discrimination)
• smaller retailers (potential competitive relief if large chains face compliance costs)

Named in the bill

Federal Trade Commission (FTC), Department of Labor (SecDOL), food retailers (15,000+ sq ft), third-party delivery service providers, Target (TGT), Estée Lauder (EL), Philip Morris (PM), Church & Dwight (CHD), Tyson Foods (TSN)

Where it stands

2 cosponsors: 1 Democrats, 1 Republicans.

• May 19, 2026 — Introduced · Congress.gov: “Introduced in House”
• May 19, 2026 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 3 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $2,564,000 in lobbying spend. A filing names 28 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

Josh Gottheimer, the sponsor, reported $1,000,800 in PAC receipts in the 2026 cycle.

• Uber Technologies, Inc. — $1,230,000 on 1 filing
• Doordash, Inc. — $750,000 on 1 filing
• Food Marketplace Inc — $584,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.