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The City of Seattle
Ordinance
Council Bill
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An ordinance relating to prohibiting algorithmic-based price discrimination; requiring covered retailer disclosures to consumers; requiring that covered retailers retain certain records; and adding a new Chapter 7.35 to the Seattle Municipal Code.
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Recitals:
Many jurisdictions across the country, including California, Connecticut, Colorado, Illinois, Maryland, New York State, and New York City, among others, have considered, are considering, or have passed legislation to regulate the use of algorithmic software and consumer data to set prices.
The Washington State Legislature considered regulating algorithmic price discrimination in House Bill 2481 in the 2026 legislative session.
In January 2025, the Federal Trade Commission released a report detailing methods of algorithmic price setting. The report found that algorithmic price discrimination tools are being developed and marketed across "[s]everal types of consumer-facing businesses . . . including grocery stores, apparel retailers, health and beauty retailers, home goods and furnishing stores, convenience stores, building and hardware stores, and general merchandise retailers such as department or discount stores."1
The report further found that "[c]onsumer segmentation and profiling tools create unique consumer profiles and divide consumers into segments based on attributes or behaviors that are either inferred or explicitly defined. Those segments can then be used as targets for ads, promotions, and coupons based on what a company has learned about a consumer, including how the consumer interacts with its website, what they have spent on specific products or services, or predictions about what that consumer might purchase in the future."2
These tools create the environment for retailers to set individual prices ...
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