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Bill Summary · SB 839

Summary of SB 839 (2025 Session) – North Carolina: Price Transparency Act

Purpose and intent

SB 839, titled the Price Transparency Act, seeks to regulate pricing practices in the grocery sector by banning dynamic and algorithmic pricing, prohibiting anti-competitive mergers among food retailers, distributors, and processors, imposing a cap on credit card surcharges, and establishing a state-level Price Transparency Team to monitor and report consumer price data. The bill assigns enforcement responsibilities to the North Carolina Department of Justice (NCDOJ) and appropriates funding for enforcement.

Key provisions

1) Definitions

  • Algorithmic pricing: Using automated processes to collect consumers' personal data and set individualized prices based on that data.
  • Anti-competitive merger: Any merger, acquisition, or consolidation among food retailers, food distributors, or food processors likely to substantially lessen competition in North Carolina.
  • Dynamic pricing: Varying prices within the same business day based on demand or other factors, including algorithmic pricing.
  • Other defined terms: Consumer, food distributor, food processor, and food retailer (e.g., grocers or grocery sections).

2) Dynamic pricing ban

  • Ban on dynamic pricing: Food retailers may not employ dynamic pricing practices.

3) Exceptions to the dynamic pricing ban

Procedural allowances where pricing changes do not violate the ban, including:
- Promotional pricing, loyalty programs, or other temporary discounts aimed at retaining customers.
- Price differences based on objective costs to serve different consumers (e.g., shipping costs or taxes by location).
- Discounts for larger defined groups (e.g., military veterans, seniors, students, teachers).
- Price corrections resulting from pricing errors.
- Price resets following a system or network outage.

4) Anti-competitive merger ban

  • Food retailers, distributors, and processors are prohibited from engaging in anti-competitive mergers.

5) Credit card surcharge cap

  • Caps surcharges for credit/debit card payments at 2% of the total transaction price.

6) Price Transparency Team (PTT)

  • Created within the NCDOJ’s Consumer Protection Division.
  • Purpose: Monitor and report average prices for groceries, fuel, water, electricity, gas, and internet in North Carolina.
  • Reporting: Quarterly reports published on the first business day of each quarter.
  • Data: Reports must include the previous quarter’s average prices for the specified goods/services and the percentage change from the preceding quarter.
  • Accessibility: Reports available to the public via the NCDOJ website.
  • Legal note: A violation of this section is treated as an unfair trade practice under G.S. 75-1.1.

7) Enforcement and penalties

  • Violations of the act (primarily the dynamic pricing ban and anti-competitive mergers) are treated as unfair trade practices under North Carolina General Statutes § 75-1.1, enabling enforcement actions by the Attorney General.

Funding and effective date

  • Appropriation: The act appropriates $5,000,000 ($5 million) in recurring General Fund money beginning in the 2026-2027 fiscal year to the Office of the Attorney General to support enforcement of the Grocery Price Transparency Act.
  • Effective date: October 1, 2026.

Potential impact and who is affected

  • Food retailers, distributors, and processors: Must cease dynamic/algorithmic pricing practices and may face scrutiny or penalties for engaging in anti-competitive mergers. They must also comply with the 2% credit card surcharge cap.
  • Consumers: Benefit from restrictions on price discrimination via algorithmic pricing and improved transparency through quarterly public price reports; potential protections against hidden or discriminatory pricing.
  • State regulators and enforcement: NCDOJ’s Consumer Protection Division gains a dedicated Price Transparency Team and funding to monitor prices and enforce the act.
  • Merger activity: Anticipates stricter scrutiny of mergers in the food sector, potentially limiting transactions deemed anti-competitive.

Procedural and timeline notes

  • The bill establishes new statutory provisions in Article 1 of Chapter 75 (to be codified as § 75-45).
  • Quarterly price reports are due on the first business day of each quarter, starting after implementation.
  • The act becomes effective October 1, 2026, with funding available beginning in the 2026-2027 fiscal year.
  • If violated, actions align with unfair trade practices under G.S. 75-1.1, enabling standard enforcement mechanisms.

If you’d like, I can provide a side-by-side comparison with existing law, anticipated regulatory guidance language, or a plain-language explainer for consumers.

Compiled from official sources — confirm details with the bill’s official record.

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