The San Diego City Council Monday passed an ordinance banning grocery stores from offering digital-only deals in the city, the first of its kind in the nation.
The ordinance, which must still go through a second reading in April, is intended to help those who might not have the access or knowledge to use digital coupons. Many grocery stores offer deals through phone apps or otherwise online only.
Proposed by City Councilman Sean Elo-Rivera and supported by Councilwoman Marni von Wilpert, the Grocery Pricing Transparency Ordinance is similar to proposals under consideration in New Jersey, Washington, Illinois and Massachusetts.
"This becomes problematic when such discounts or coupons are offered only through digital means because it disadvantages those in the digital divide, or those who do not have ready access to or comfort with computers and the internet," a statement from Elo-Rivera's office reads. "This often include seniors, low-income households, and nonnative English speakers, and often these populations are most impacted by higher food costs."
According to a 2022 report, more than 53,000 households in the city of San Diego lack internet access, mostly among seniors, those with low income and those without college degrees. In other words, some of those most vulnerable to inflation.
"We are not trying to punish people," von Wilpert said of the grocery stores. "We are just trying to bridge that digital divide."
Other efforts have been made to pass similar ordinances but have fallen prey to last-minute lobbying and failed, Elo-Rivera said. The ordinance will go into effect 90 days after the second reading.
The implications for violating the law are unclear, but a city presentation intimated there could be civil penalties set for grocers in violation.
Grocery stores who still want to offer deals through the internet must "post a sign or notice at checkout registers in a location conspicuous to consumers stating that any coupons or digital discounts offered through digital or electronic means are available and will be honored even if the consumer has not signed up for the electronic medium," according to the presentation to the council Monday.
While there wasn't true opposition to the ordinance, there were multiple people who wanted the council to delay the decision to allow for negotiations with grocery stores or to make it more concrete before passing it.
The item was first proposed in October 2024 and passed unanimously out of committee last month.
"I don't know a single person not concerned with grocery prices being too high," said Paul Downey, president and CEO of Serving Seniors San Diego. He also said the uncertainty of actions coming out of Washington, D.C. are leading to fear that tariffs or a trade war could further increase prices for groceries.
Citing an AARP article, Elo-Rivera's office noted 25% of older adults lack internet connectivity and 39% do not have a mobile phone according to Pew Research. As a result, "many older consumers are missing out on these deals. That's made worse in the current high inflationary environment, with prices soaring for everything from food to gasoline," the article reads.
Council President Joe LaCava applauded the support for senior citizens, but also acknowledged the ordinance would help people who simply didn't want to give person information and shopping habits to a corporate app on their phone.
