The San Diego City Council Tuesday unanimously approved an ordinance banning grocery stores from offering digital-only deals in the city.
The ordinance passed the council on its first reading last month. Tuesday's action means it will take effect in 90 days.
The law 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 Councilmember Sean Elo-Rivera and supported by Councilmember 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," according to a statement from Elo-Rivera's office. "This often includes 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 San Diego lack internet access, mostly seniors, those with low incomes and without college degrees.
"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 implications for violating the law are unclear, but a city presentation intimated there could be civil penalties set for grocers in violation.
Grocery stores that 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, multiple people wanted the council to delay the decision to allow for negotiations with grocery stores or to make the measure more concrete.
"Without adjustments, this ordinance will unfortunately do more harm than good," said Tim James, speaking on behalf of grocery store owners. He was concerned that loyalty programs would be targeted as well, which could cost stores business.
Von Wilpert said loyalty programs will not be impacted.
The item was first proposed in October 2024 and passed unanimously out of committee in February.
"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 that 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 states.
Council President Joe LaCava applauded the support for senior citizens, but also acknowledged that the ordinance would help people who simply didn't want to give personal information and shopping habits to a corporate app on their phone.
