The debate over facial recognition technology is shifting to supermarkets as lawmakers worry about its use for customer profiling and dynamic pricing. While stores deploy the technology primarily to deter shoplifting, critics argue it could be repurposed to track shoppers and adjust prices based on their behavior and preferences.

New York City Council has proposed legislation to ban facial recognition in public accommodations like grocery stores. During a March hearing, witnesses warned that unregulated use could lead to surveillance pricing, where retailers charge different amounts based on customer data. Companies like Tencent Cloud and Facia AI already market systems that recognize returning customers and offer personalized promotions.

Privacy advocates and former FTC officials highlight significant risks, including persistent tracking and potential discrimination. Massachusetts lawmakers have introduced more specific legislation to prevent grocery stores from using facial recognition for pricing, though the bill has stalled. Federal efforts like the Stop Price Gouging in Grocery Stores Act would require clear opt-in consent for biometric pricing, but lack bipartisan support.