Arizona lawmaker explains why he opposes dynamic pricing in grocery stores

PHOENIX — As Walmart ushers in a new era of digital price tags in thousands of stores, one Arizona lawmaker is sounding the alarm and warning of potential dangers.

Electronic price labels that change costs in the blink of an eye could hurt shoppers, according to Democratic state Rep. Cesar Aguilar, who introduced a bill to limit dynamic pricing.

“That is something I introduced last (session): HB 2940, which outlaws price tags for over-the-shelves items and allows the attorney general to enforce it with a $5,000 penalty,” Aguilar told KTAR News 92.3 FM’s Arizona’s Morning News on Thursday.

Why is Arizona Democrat opposed to dynamic pricing, electronic price labels?

Aguilar said he introduced the bill to spark a conversation about how shifting, unpredictable pricing can make it difficult for consumers to anticipate costs during their grocery runs.

“We saw, last year, Uber and Lyft getting called to the U.S. Senate for transparency on price surges,” he said. “That’s one thing that I’m worried about that’s going to happen at the grocery stores, and this is something that allows us to be able to survive.”

Grocery store prices remain high, even as retailers adopt new technologies like self-checkouts to reduce labor costs, Aguilar added.

“Where does the government play a role in trying to make sure that we’re protecting the consumers when it comes to groceries?” he asked. “We all need to eat and so it’s going to impact everyday Arizonans every day.”

Arizona legislator concerned over unpredictable product price surges

Part of his concern stems from the price gouging customers suffered from during the deadly Palisades Fire that raged through the Los Angeles area in January.

“What we saw happen in California was that the local gas stations started to increase prices. Hotel started to increase prices, and so, when there is a a high demand, there is a possibility that these grocery stores can instantly change that,” Aguilar said.

Some examples could be the price of ice increasing during heat waves or umbrellas shooting up a few dollars during a monsoon.

“That’s what worries me for consumers, especially in desperate times of needs,” Aguilar said. “If that can happen, I think this is where my legislation comes in: to be able to tackle that from happening.”

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