Council notes: Algorithmic grocery pricing ban, call for Pride flag over Denny Blaine, Bruce Lee Way, Wilson ‘recall’ legal costs

(Image: City of Seattle)

As Mayor Katie Wilson prepares to unveil her administration’s first budget proposal, the Seattle City Council will also be wrapping up some other legislative business Tuesday:

• Grocery ‘surveillance pricing’ ban: The bill to to ban algorithmic-based pricing on groceries and essential items in the city is up for a final vote. Wilson has championed the grocery industry ban, calling for restrictions on surveillance pricing in Seattle. Under the bill co-sponsored by Alexis Mercedes Rinck and Dionne Foster, a Seattle “Fair and Transparent Pricing” policy would prevent large grocery chains and delivery platforms from using personal consumer data to charge different prices to different shoppers. The ban would apply to businesses with 20 or more locations globally. Baseline prices must be posted and publicly available. The ordinance prohibits using electronic shelf labels to display prices dynamically modified through personal data algorithms. However, the bill permits standard business practices, including manufacturer coupons, storewide promotions, and group discounts for seniors, veterans, students, or employees. Grocers can also offer loyalty discounts based on purchase history if savings are organized into standardized customer tiers rather than individualized prices and are not merged with external behavioral data. The Department of Finance and Administrative Services will oversee rulemaking with a $175,000 budget, while the City Attorney receives subpoena authority to investigate and prosecute civil violations. The proposal also establishes a private right of action, allowing consumers to sue. Council members will consider a raft of amendments prior to Tuesday’s vote:
  

  Amendment	Sponsor	Title / Topic	Summary of Proposed Effect
  Amendment A	Kettle	Prohibit Using Algorithmic-Based Price Discrimination To Increase Prices	Prohibits using algorithmic-based price discrimination to increase the price of goods above the bona fide market price, rather than prohibiting any modification of price. Allows discounts based on personal information, removes regulations regarding discounted prices and qualifying tiers, and requires covered retailers to disclose whether personal information was used to set a discounted price.
  Amendment B	Hollingsworth	Exempting Discounts on Gas from Definition of Algorithmic-Based Price Discrimination	Clarifies that discounts on motor fuel (gas) earned through a loyalty, membership, or rewards program are permitted under the ordinance, provided they satisfy applicable loyalty program requirements.
  Amendment C	Kettle	Providing more flexibility for providing discounts using personal information	Provides flexibility for covered retailers by allowing them to share personal information to target manufacturer or third-party coupons, removes the requirement to offer discounts on equal terms to consumer groups, allows purchase history as an eligible criteria without requiring that any consumer could potentially qualify, and allows loyalty program discounts to be based primarily on purchase history groupings without strict parameters.
  Amendment D	Kettle	Clarify Definition of Electronic Shelf Label System	Clarifies the definition of an electronic shelf label system to explicitly mean hardware, software, or connected technology used to display or update prices electronically at the shelf.
  Amendment E	Kettle	Limiting Records Retention and Private Right of Action Statute of Limitations to One Year	Reduces the record retention requirement for covered retailers from three years to one year, and shortens the statute of limitations for filing a civil action under the private right of action from three years to one year.
  Amendment F	Hollingsworth	Clarifying permissible surveillance	Clarifies that Chapter 7.35 does not prohibit technology used solely for security, loss prevention, safety, fraud prevention or detection, or legal compliance, provided the technology and resulting information are not used for algorithmic price discrimination.
  Amendment G	Kettle	Clarifying Preemption in the Event of State Legislation	Specifies that Chapter 7.35 will be superseded and unenforceable upon the effective date of any law enacted by the State of Washington regulating algorithmic-based price discrimination by covered retailers.
  Amendment H	Kettle	Annual Reporting	Requests that the Executive conduct an annual grocery price analysis using a Bureau of Labor Statistics “basket of goods” methodology and transmit an annual report to the Council by December 31 comparing Seattle prices to neighboring King County cities, tracking loyalty/rewards program availability, and detailing the count and geographic distribution of covered retailers.

• Denny Blaine resolution: District 3 rep and council president Joy Hollingsworth will seek the full council’s support for her resolution recognizing Denny Blaine Park as a site of historical and cultural significance to Seattle’s LGBTQ+ community and establishes City support for preserving and interpreting its heritage. The resolution from Hollingsworth formally recognizes the beach as part of Seattle’s “historic Olmsted park system” and a “site of historic and cultural importance to Seattle’s LGBTQ+ community,” celebrating its role for more than half a century as an “affirming and meaningful gathering place” with particular significance for “transgender and gender-diverse community members.” Noting that the Washington State Department of Archaeology and Historic Preservation recently granted it historic recognition, the resolution endorses collaboration with the Friends of Denny Blaine and Seattle Parks and Recreation to “document, interpret, and share the park’s LGBTQ+ history,” while encouraging the installation of signage reflecting the park’s historic significance and the “placement of a Pride flag or similar honorary symbol” following community engagement and departmental review. The resolution comes as the city has held public meetings to form new guidelines for the popular nude beach after a victory in the courts against a bid from park neighbors to close the public space. You can read the full proposed resolution here.
• Bruce Lee street name resolution: Another resolution up for a vote would support an honorary designation of S King between 6th Ave S and Maynard Ave S as “Bruce Lee Way.”
• Wilson ‘recall’ legal costs: The council is also set to sign off on ordinance authorizing the city to pay an estimated $24,131 in legal defense expenses for Mayor Katie Wilson in the punted recall effort against her. CHS reported here on the withdrawal of the charges over concerns about Wilson’s public safety policies and the removal of the police chief. The payment fulfills the city legal obligation to cover defense costs in judicial proceedings evaluating the sufficiency of a recall petition.

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