San Diego Municipal Code Div. 1 Exclusive Digital Discounts Prohibited

(“Exclusive Digital Discounts Prohibited” added 4-30-2025 by O-21946 N.S.; effective 7-29-2025.)

The purpose of this Division is to ensure equitable access to discount pricing for all consumers, regardless of their access to or familiarity with digital technology. Under this Division, any grocery store that offers or sells groceries in the City of San Diego and offers digital discounts, such as through a mobile or smartphone application, must provide in-store alternatives so consumers have access to the digital discount with identical pricing for the same groceries without the need to use electronic or digital technology, such as smartphone or Internet access. It is not the intent of this Division to prevent consumers from engaging with grocery story loyalty and rewards programs. Rather, it is the intent of this Division is to prevent discriminatory practices that restrict discounted prices to consumers exclusively through the Internet or other electronic methods, and to promote transparency and consumer fairness. (“Purpose and Intent” added 4-30-2025 by O-21946 N.S.; effective 7-29-2025.) (Amended 7-18-2025 by O-21988 N.S.; effective 8-17-2025.)

For purposes of this Division, defined terms appear in italics. The following definitions apply in this Division:

City of San Diego and City have the same meaning as in San Diego Municipal Code
section 11.0210.

Consumer means a person who buys groceries from a grocery store.

Coupon means a voucher, certificate, document, or similar matter entitling the holder
to a discount for groceries.

Digital discount means a store coupon, rebate, or similar publicly available discount
offered to consumers through digital or electronic means, including websites, mobile
or smartphone applications, or QR codes.

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Groceries means foodstuffs and household supplies. Groceries include packaged food intended for human consumption or for domestic animals normally kept as household pets, produce, meats, poultry, fish, deli products, dairy products, beverages, baked foods, prepared foods, paper and plastic products, diapers, detergents, soaps, other cleaning agents, pharmaceuticals, nonprescription drugs, bandages, female hygiene products, and toiletries.

Grocer means a person or business who operates a grocery store.

Grocery store means retail establishments that sell groceries. A grocery store does not include convenience stores, warehouse clubs, or pharmacies. (“Definitions” added 4-30-2025 by O-21946 N.S.; effective 7-29-2025.) (Amended 7-18-2025 by O-21988 N.S.; effective 8-17-2025.)

(a) Except as provided in San Diego Municipal Code section 311.0105, on or after October 1, 2025, any grocery store that:

(1) offers publicly available digital discounts to consumers for the
purchase of groceries must provide in-store alternatives, so consumers
have access to the publicly available digital discount with identical
pricing for the same groceries without needing to use a smartphone or
the Internet; and

(2) has a digital discount available to all participants of a loyalty program
or rewards program, must provide in-store alternatives, so participants
engaging in loyalty or rewards programs have access to the digital
discount for the same groceries without needing to use a smartphone
or the Internet.

(b) The digital discount price must be clearly shown where the discounted
groceries are displayed or on each individual discounted item offered for sale.

(c) On or after October 1, 2025, grocery stores that provide publicly available
digital discounts must post a sign or notice in a location visible to consumers
that states the following:

Fair Pricing for All: Your Right to Equal Discounts - Under
San Diego law, digital discounts must be available to all consumers
and participants of loyalty or rewards programs without needing to
use a smartphone or the Internet, and in-store alternatives must be
made available. Violations of this law are subject to San Diego
Municipal Code section 311.0104.

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(“Digital Discount Practices” added 4-30-2025 by O-21946 N.S.; effective 7-29-2025.) (Amended 7-18-2025 by O-21988 N.S.; effective 8-17-2025.)

(a) The City is authorized to pursue violations of this Division as an act of unfair competition within the meaning of section 17200 of the California Business and Professions Code and subject to the remedies and penalties set forth in Division 7, Part 2, Chapter 5 of the California Business and Professions Code, as may be amended.

(b) The City shall give written notice of a violation to a grocer prior to initiating
an enforcement action.

(c) Written notices issued by the City shall give a grocer 15 days to cure any
violation.

(d) No private right of action is intended or created under this Division.
(“Unlawful Pricing Practices” added 4-30-2025 by O-21946 N.S.; effective
7-29-2025.)
(Amended 7-18-2025 by O-21988 N.S.; effective 8-17-2025.)

This Division does not apply to the following:

(a) grocery stores that operate exclusively online through the Internet and do not
have a physical presence in the City;

(b) digital discounts offered by or through grocery store paid subscription or
membership programs; and

(c) personalized digital discounts offered to consumers by or through grocery
store loyalty or rewards programs.

(“Exceptions” added 4-30-2025 by O-21946 N.S.; effective 7-29-2025.)
(Amended 7-18-2025 by O-21988 N.S.; effective 8-17-2025.)

The City Manager, or designated department, shall present to a Council Committee or issue a report, on a biannual basis, communicating any recorded complaints or actions initiated relating to this Division. (“Reporting” added 7-18-2025 by O-21988 N.S.; effective 8-17-2025.)

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