Seattle has become the first U.S. city to ban what critics call "surveillance pricing" at grocery stores, The Seattle Times reported.

Mayor Katie Wilson signed the Fair and Transparent Pricing law this week. It stops large grocery chains and delivery services from using a shopper's personal data to decide what that person pays for food. That data can include browsing history, location, job status, race, gender, social media posts or chatbot chats, KOMO News reported.

The idea is simple: the price of milk should depend on the milk, not on what a computer guesses you can afford. Prices must be clearly posted and open to all shoppers.

The law covers grocers with at least 20 stores worldwide, plus online delivery services. Smaller chains, convenience stores and farmers markets are exempt. It takes effect Sept. 1, 2027.

The City Council passed it 7-2 after hours of debate. Council members Bob Kettle and Maritza Rivera voted no.

Supporters say regular coupons and open discounts, such as deals for seniors, veterans and loyalty-card members, will still be allowed.

The grocery industry fought the measure. Amanda Dalton, head of the Northwest Grocery Retail Association, told KOMO the industry supports banning the use of personal data to charge shoppers more. But she said the law could put discounts at risk because the line between banned pricing and personal savings offers is not clear. Safeway said it does not use personal data to raise prices and uses it for voluntary digital coupons and member deals.

Why it matters beyond Seattle: stores and apps collect more data on shoppers every year. Other cities and states are watching to see whether this kind of rule works.

What we know: Seattle's law bans data-based individual grocery prices starting in September 2027.
What we don't: How the city will enforce it, and whether grocers will change loyalty programs.