Digital Prices: Why Banning Them Doesn’t Help
Grocery stores in New York are debating a ban on digital shelf labels, or DSLs. The idea is that these electronic signs could hide unfair pricing tricks, but the truth is different.
What DSLs Actually Do
- Display a single price: They simply show a price.
- No personal data tracking: DSLs do not track who you are, nor can they change a price for one shopper and another.
- Universal visibility: Anyone in the store sees the same number on every shelf.
In many places, people already use digital displays. Gas stations and fast‑food restaurants show the same prices to everyone. These signs are clear, consistent, and do not read personal data.
The Real Issue: Mislabeling
Paper tags are printed, sorted and replaced by hand. Mistakes happen—wrong prices, missing labels, wrong charges at the register. DSLs sync with the checkout system in real time, cutting errors and complaints.
Industry experts say better pricing systems cut labor costs and give shoppers a smoother experience. Workers who would spend hours replacing paper tags can focus on stocking shelves or helping customers instead.
Concerns About “Surveillance Pricing”
Lawmakers worry about “surveillance pricing,” a real issue online where data drives price changes. But DSLs have no access to browsing history or purchase patterns, so they cannot do that.
Why Banning DSLs Might Backfire
Banning DSLs would only make pricing less accurate and raise costs for both stores and shoppers. It would not stop unfair online pricing, but it could force higher prices in the grocery aisle.
The Bottom Line
The solution is to target real unfair practices with clear rules, not to stop a harmless technology that improves accuracy and saves money.