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Authorizing the Committee on Technology and Information Services to hold hearings to examine the use of emerging technologies, including surveillance, algorithmic, and dynamic pricing systems, in the grocery industry to better understand how these technologies are being utilized and their potential impacts for consumers and retailers, and to examine opportunities to support transparency, affordability, and consumer confidence.
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WHEREAS, Philadelphia residents and businesses continue to navigate changing costs throughout the food system, making the affordability, accessibility, and transparency of grocery prices important issues for Philadelphia residents and businesses; and
WHEREAS, Advances in data analytics, artificial intelligence, machine learning, electronic shelf labels, and other technologies are creating new opportunities for grocery retailers to manage inventory and to respond to changing market conditions; and
WHEREAS, As these advances in technology continue to change the way goods are priced and sold, businesses are increasingly able to use consumer data, automated systems, and real-time market information to inform pricing decisions; and
WHEREAS, This includes the potential use of surveillance pricing, which uses information about consumers and their purchasing behavior to inform prices or promotions; the use of algorithmic pricing, which uses automated systems and data-driven models to determine or recommend prices; and the use of dynamic pricing, which allows prices to change over time in response to factors such as supply, demand, inventory, or other market conditions; and
WHEREAS, The growing use of these technologies raises important questions about how prices are determined, what information is used in pricing decisions, how frequently prices may change, and how consumers can best understand the prices they are offered; and
WHEREAS, Philadelphia residents continue to face significant increases in the cost of groceries and other household necessities; according to the U.S. Bureau of Labor Statistics, the food-at-home index for the Philadelphia-Camden-Wilmington region increased by approximately 35 percent between December 2019 and June 2026, placing continued pressure on household budgets and making affordable access to nutritious food increasingly difficult for Philadelphians; and
WHEREAS, As Philadelphia confronts this ongoing affordability challenge, City Council has a responsibility to investigate emerging pricing practices and technologies and to work collaboratively with consumers, grocery retailers, technology providers, and other stakeholders to identify effective strategies that promote transparency, affordability, and consumer protection; and
WHEREAS, An exploratory examination of these practices can help identify opportunities to promote clear and understandable pricing information, protect consumer confidence, support fair competition, and ensure that technological innovation benefits both consumers and businesses; and
WHEREAS, City Council can play a constructive role in bringing together grocery retailers, technology providers, consumer advocates, economists, academics, and other stakeholders to better understand emerging pricing practices and identify potential approaches that balance innovation, operational needs, consumer interests, and affordability; and
WHEREAS, Ensuring that every Philadelphia family can afford to put affordable and nutritious food on the table is a shared responsibility, and as technology continues to shape how groceries are priced and sold, it is incumbent upon City government, grocery retailers, consumers, and other stakeholders to work together to understand these emerging practices and identify thoughtful solutions that protect Philadelphia residents, promote affordability and transparency, and support a healthy and sustainable grocery industry; now, therefore, be it
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the Committee on Technology and Information Services is authorized to hold hearings to examine the use of emerging technologies, including surveillance, algorithmic, and dynamic pricing systems, in the grocery industry to better understand how these technologies are being utilized and their potential impacts for consumers and retailers, and to examine opportunities to support transparency, affordability, and consumer confidence.
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