Stop Price Gouging in Grocery Stores Act of 2026

Stop Price Gouging in Grocery Stores Act of 2026 (S.3892)

Purpose and intent

• Prohibits certain pricing practices by operators of retail grocery stores to protect consumers from price gouging and from surveillance-based price setting.
• Establishes FTC enforcement mechanisms, consumer remedies, and limited state role to support enforcement.

Key provisions and changes

• Prohibition on price gouging (Section 2)

  • Retail food store operators may not sell or offer for sale an item at a grossly excessive price.
  • Creates an affirmative defense: if a price increase is directly attributable to costs outside the retailer’s control and incurred in procuring, acquiring, distributing, or providing the item, it is not a violation.
  • The FTC must issue guidance within 180 days post-enactment on:
  • What constitutes a market for purposes of this act
  • What qualifies as a grossly excessive price
  • What constitutes an excessive price
  • Defines “grossly excessive price” with metrics to be determined by the Commission, including potential reference to pricing at or above 120% of the market average over the prior 6 months (subject to Commission adjustment).

• Prohibition on surveillance-based price setting (Section 3)

  • Retailers may not set prices based on personal consumer information, including data gathered via facial recognition or electronic surveillance tech.
  • Exceptions allowed if:
  • Price differences are based on reasonable costs to serve different consumers.
  • Discounts for specific groups (occupation, age, military, student status, etc.) are based on publicly disclosed eligibility criteria and applied uniformly to all qualifying consumers.
  • Personal information is used solely to offer/administer discounts and not for targeted pricing or surveillance.
  • Biometric data may be used only with explicit consumer consent and strict disclosures about collection, storage duration, sharing with law enforcement, a written consumer release, and prohibition on selling/sharing with third parties.

• Facial recognition disclosure (Section 4)

  • Stores using facial recognition must display clear, plain-language notices at the main entrance describing use and purpose.

• Electronic shelf labels (Section 5)

  • Stores over 10,000 square feet may not use electronic shelf labels or digital price displays.
  • Must use non-digital price presentations.
  • However, allowed discounts/promotions based on compliant criteria and purchase history, as described in Section 3, remain permissible.

• Enforcement (Section 6)

  • FTC enforces sections 2, 3, 4, and 5 and can adopt regulations as needed.
  • States may bring actions on behalf of residents to enjoin practices, seek compliance, and obtain damages (greater of actual damages or $3,000 per violation), plus restitution and penalties.
  • Private right of action: Consumers may sue for violations, with damages capped at the greater of actual damages or $3,000 per violation; prevailing plaintiffs may recover costs and attorney’s fees.
  • If willful/knowing violations are found, damages can be tripled.
  • Statute of limitations: actions must be filed within 5 years from discovery of the violation.
  • Pre-dispute arbitration agreements and joint-action waivers are not enforceable as to these consumer remedies.

• Preemption (Section 7)

  • Act does not preempt state law except to the extent of conflicts.
  • State laws that provide greater protections related to price gouging, surveillance-based pricing, or use of biometric data are not considered conflicting.

• Funding (Section 8)

  • Authorizes $5 million for fiscal year 2026 to implement the Act (available through Sept 30, 2032).

• Definitions (Section 9)

  • Key terms clarified, including:
  • Biometric data, electronic shelf label, electronic surveillance technology, facial recognition technology, item, price, retail food store (as per Food and Nutrition Act), surveillance-based price setting, personal information, and other relevant terms.
  • Clarifies that “retail food store” aligns with the Food and Nutrition Act.
  • Non-digital presentation of price defined (signs, labels, or tags on shelves/items).

Who and what is affected

• Affected entities: Operators of retail grocery stores, particularly larger stores (those over 10,000 square feet for the electronic shelf label prohibition).
• Consumers: Increased protections against price gouging and invasive pricing practices; potential access to remedies for violations.
• States and FTC: Shared enforcement role; states can sue on behalf of residents; FTC handles federal enforcement and rulemaking.
• Technologies: Prohibits use of electronic shelf labels and facial-recognition-based pricing in large stores; requires disclosures and consent for biometric data.

Procedural and timeline notes

• Introduction and referral to the Senate Committee on Commerce, Science, and Transportation on Feb 12, 2026.
• For price gouging and surveillance-based pricing provisions, the FTC must issue implementing regulations within 180 days after enactment.
• Initial funding provided for 2026, with funds available through 2032.
• Private and state enforcement pathways are provided, with penalties and potential treble damages for willful violations.
• Non-digital price presentation requirement applies to large stores; online retailers are excluded from certain sections (e.g., Section 4 excludes online entities).

This summary captures the bill’s core aims, main constraints on pricing and data practices, enforcement mechanisms, and key definitions and timelines.