As grocers continue to adjust pricing strategies to remain competitive, a growing number of consumers and politicians worry that dynamic pricing—what critics call 'surveillance pricing'—could further burden shoppers' wallets.

According to MultiState, a consulting firm for state and local government relations, more than 100 price transparency bills were introduced across 33 states and Washington, D.C., last year. Entering the new year, the legislative momentum to ban dynamic pricing by grocers has not waned.

As states push for price transparency legislation, more retailers are equipping their stores with electronic shelf labels (ESLs) that can quickly update prices. For example, Walmart announced earlier this month that it plans to roll out ESLs to all its stores within the next year.

In February, the United Food and Commercial Workers International Union (UFCW) launched a national campaign to ban 'predatory surveillance pricing,' resist the infiltration of AI-driven technology in grocery stores, and secure good union grocery jobs while providing fair prices for families.

According to UFCW, New York, Oklahoma, Washington, Arizona, Nebraska, Maryland, and Tennessee have introduced legislation related to surveillance pricing and ESLs proposed by the union.

On the same day UFCW launched its campaign, Democratic U.S. Senators Ben Ray Luján of New Mexico and Jeff Merkley of Oregon introduced the Stopping Grocery Price Gouging Act of 2026 in the Senate, with a companion version introduced in the House months earlier. UFCW expressed support for both bills.

According to a press release from Luján, in addition to banning dynamic pricing in grocery stores, the legislation would require grocers to disclose their use of facial recognition technology, prohibit large grocery stores from using ESLs, and establish 'enforcement mechanisms to hold corporations accountable.'

Luján said in a statement: 'With rising costs from President Trump's trade war and Republican cuts to SNAP, Congress must act to ensure technology is used to improve Americans' lives, not increase their grocery bills. Our friends, family, and neighbors should be able to shop at their local grocery store without worrying about predatory pricing.'

The pricing battle at the state level

Legislation in multiple states is also targeting new pricing practices, with some seeking broad bans, while others focus on grocery retailers or even the shelf display technology itself.

Earlier this month, the Tennessee House Banking and Consumer Affairs Subcommittee held a hearing on a bill that would prohibit food retail establishments larger than 15,000 square feet from using ESLs or any other digital shelf display technology, while also banning personalized algorithmic pricing.

Meanwhile, Maryland's recently announced Preventing Predatory Pricing Act takes a slightly different approach. In January, Governor Wes Moore unveiled the bill as part of his 2026 Maryland legislative agenda. Similar to Tennessee's bill, the legislation would prohibit food retailers from using consumers' 'surveillance data' to set personalized prices for goods or services. It also requires grocers to keep prices fixed for at least one business day—a move directly targeting retailers' adoption of ESLs.

Maryland's legislation passed its first reading in the Senate on February 17 and has been referred to committee.

Two recent bills in New York aim to ban surveillance pricing practices. One focuses on prohibiting the use of ESLs and directly targets surveillance pricing by food retailers. On Monday, New York Attorney General Letitia James, along with UFCW Local 1500 and other organizations, called for the passage of both bills.

Robert Newell, president of UFCW Local 1500, said in a statement: 'New Yorkers are already feeling the impact of high grocery bills. The last thing they need is corporations using AI to set personalized prices and squeeze them further.'

This is not the first time grocers have faced political scrutiny over their pricing practices or adoption of pricing technology. In summer 2024, Kroger came under fire for using ESLs, with two U.S. senators requesting more information and expressing concerns that the technology allows stores to 'calibrate price increases to maximize profits.' Kroger responded that the technology and other pricing practices are designed to lower customer costs over the long term.

Grocers continue to argue that using ESLs and dynamic pricing practices allows them to offer value and a seamless in-store experience to customers. Walmart said earlier this month that rolling out ESLs chainwide frees up employees to better assist customers in stores while ensuring accurate shelf pricing.

Walmart said in a press release: 'Before (digital shelf labels), this meant walking up and down aisles and manually changing paper tags. Now, employees manage planned price changes through Walmart's centralized system, making it easier to keep shelf prices accurate and consistent with what customers see at checkout.'