Stop Price Gouging in Grocery Stores Act of 2026
- Bill Number
- S. 3892
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-02-12: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2026-06-09T11:03:22Z
AI-Generated Summary
Purpose
The "Stop Price Gouging in Grocery Stores Act of 2026" aims to protect consumers from unfair pricing practices in physical grocery stores by banning excessive price increases (price gouging) and personalized pricing based on surveillance data. It seeks to promote fair competition and transparency in the retail food sector, ensuring that prices are not manipulated through technology or exploitation.
Key Provisions
- Prohibition on Price Gouging (Section 2): Grocery store operators cannot sell or offer items at a "grossly excessive price." An affirmative defense exists if price increases are directly due to unavoidable costs (e.g., supply chain issues) beyond the store's control. The Federal Trade Commission (FTC) must issue guidelines within 180 days of enactment defining key terms like "market," "grossly excessive price," and "excessive price," potentially using metrics such as prices exceeding 120% of the six-month average in the market.
- Prohibition on Surveillance-Based Price Setting (Section 3): Stores cannot adjust prices for individual consumers based on personal information collected via surveillance tools, such as facial recognition or other tracking. This includes using electronic shelf labels (digital price tags) for personalized pricing. Exceptions allow price differences for legitimate reasons, like uniform discounts for groups (e.g., seniors or military) based on clear, public criteria, as long as personal data is not misused for advertising or other surveillance.
- Limited Use of Biometric Data (Section 3(c)): Stores may use biometric data (e.g., fingerprints or facial scans) only with voluntary consumer consent, full written disclosure of collection, storage, purpose, and sharing (including with law enforcement), and no selling or sharing with third parties.
- Disclosure of Facial Recognition Technology (Section 4): Stores using facial recognition must post clear signs at entrances explaining its use and purpose. This applies only to physical stores, not online retailers.
- Ban on Electronic Shelf Labels (Section 5): Large grocery stores (over 10,000 square feet) cannot use electronic shelf labels or digital displays for pricing; they must use traditional non-digital methods (e.g., paper tags or stickers). Discounts based on purchase history are still allowed if they meet general exceptions.
- Enforcement (Section 6):
- The FTC treats violations as unfair or deceptive practices under the Federal Trade Commission Act, with full enforcement powers including fines and regulations.
- State attorneys general can sue on behalf of residents for injunctions, damages (at least $3,000 per violation), or other relief.
- Consumers have a private right of action in federal court for injunctions, damages (greater of actual harm or $3,000 per violation, tripled for willful acts), costs, and attorney fees. Suits must start within five years of discovery, and pre-dispute arbitration or class action waivers are invalid for these claims.
- Preemption (Section 7): The law does not override state laws unless they directly conflict; states can provide stronger consumer protections.
- Funding and Definitions (Sections 8 and 9): Authorizes $5 million for fiscal year 2026 (available until 2032) for implementation. Defines terms like "biometric data" (biological identifiers like fingerprints), "personal information" (broadly covering traits, identifiers, and inferences about individuals), "electronic surveillance technology" (tools like cameras or tracking), and "retail food store" (as defined in the Food and Nutrition Act, generally meaning physical grocery outlets).
Significant Changes to Existing Law
This bill introduces new federal prohibitions specifically targeting price gouging and tech-driven personalized pricing in the grocery sector, which were not previously regulated at the national level under consumer protection laws. It expands FTC authority to define and enforce "grossly excessive" pricing metrics, adds consumer and state enforcement tools (including private lawsuits with minimum damages and fee-shifting), and invalidates certain arbitration agreements—changes that go beyond the general unfair practices rules in the Federal Trade Commission Act. It also imposes tech restrictions (e.g., on electronic labels and surveillance) absent in prior law, while carving out exceptions to balance business needs.
Potential Impacts
- On Citizens (Consumers): Could lower grocery costs by curbing exploitative pricing during shortages or based on personal data, enhancing privacy by limiting surveillance use. Provides easier access to remedies through lawsuits, potentially deterring violations and empowering individuals against large retailers.
- On Government Agencies: The FTC gains rulemaking and enforcement responsibilities, requiring new regulations and resources (funded by the appropriation). State attorneys general receive federal backing for actions, possibly increasing oversight without preempting local efforts.
- On Businesses (Retail Food Stores): Large chains must overhaul pricing systems, abandon certain digital tools, and disclose surveillance, raising compliance costs but allowing legitimate discounts. Smaller stores (under 10,000 square feet) face fewer restrictions. No direct impact on online grocery sales.
- On International Relations: Minimal, as the law focuses on domestic retail practices; it could indirectly affect U.S. retailers with global supply chains by scrutinizing cost-based defenses for price hikes.
Main Stakeholders Affected
- Consumers: Primary beneficiaries, protected from unfair prices and data-driven discrimination.
- Retail Food Store Operators: Directly regulated, especially large chains like supermarkets, facing bans on tech and pricing tactics.
- Federal Trade Commission (FTC): Responsible for guidelines, enforcement, and oversight.
- State Governments: Attorneys general empowered to litigate, potentially increasing state-federal coordination.
- Technology Providers: Companies supplying surveillance or digital labeling tools may see reduced demand in grocery settings.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protection by creating a private right of action with statutory damages and barring arbitration waivers, which could lead to more class actions (a "pre-dispute joint action waiver" is an agreement waiving rights to group lawsuits before a dispute arises). The law's narrow preemption preserves state variations, fostering a patchwork of protections. Enforcement ties into existing FTC powers, reducing legal challenges.
- Constitutional: Potential privacy concerns under the Fourth Amendment (unreasonable searches) due to biometric and surveillance restrictions, though exceptions with consent mitigate this. No direct free speech issues, but signage requirements could be seen as compelled disclosure.
- Political: Addresses public frustration with food inflation and corporate surveillance post-pandemic, appealing to consumer advocates. It may spark debate over federal overreach into business pricing (e.g., defining "excessive" prices) versus state rights, and could influence broader antitrust or privacy legislation. As a bipartisan-introduced bill (by Senators Lujan, Merkley, Rosen, Gillibrand, and Heinrich), it signals cross-aisle support for grocery sector reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (10)
Sen. Merkley, Jeff [D-OR], Sen. Rosen, Jacky [D-NV], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Heinrich, Martin [D-NM], Sen. Sanders, Bernard [I-VT], Sen. Warren, Elizabeth [D-MA], Sen. Ossoff, Jon [D-GA], Sen. Bennet, Michael F. [D-CO], Sen. Duckworth, Tammy [D-IL], Sen. Schiff, Adam B. [D-CA]
Recent Actions
- 2026-02-12: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2026-02-12: Introduced in Senate
Bill Versions
- Stop Price Gouging in Grocery Stores Act of 2026 — issued 2026-02-12 — PDF (17 pages)