Washington, D.C. – The National Grocers Association (NGA), the trade association representing the independent supermarket industry, is urging the Federal Trade Commission (FTC) to distinguish between personalized pricing that raises prices based on a consumer’s personal data and the everyday grocery practices that lower prices for shoppers.

In comments submitted to the FTC on its Proposed Enforcement Policy Statement Regarding Personalized Pricing, NGA emphasized that independent grocers do not use shoppers’ personal data to determine how much they are willing to pay and then charge them more. In a grocery store, the price is posted on the shelf. 

“Independent grocers do not use personal data to charge shoppers more for the same item. Loyalty programs, coupons and discounts are tools that put money back in the consumers’ pockets,” said Stephanie Johnson, NGA head of government affairs & SVP. “At a time when families are focused on the cost of groceries, we want to make sure these efforts don’t unintentionally discourage the very tools that help lower their grocery bills.” 

NGA cautioned that overly broad policies addressing so-called “surveillance pricing” could inadvertently sweep in common grocery practices that consumers rely on to save money, including loyalty and rewards programs, targeted offers, digital coupons, markdowns and electronic shelf labels.

Independent grocers operate on extremely thin margins, typically one to two percent, and know their success is dictated on customer trust and repeat business. Their pricing practices are designed to compete for shoppers and lower costs, not identify the maximum price an individual consumer will pay. 

You can read NGA’s comments here.

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About NGA

NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.