NGA Outlines Principles on Price and Technology

The National Grocers Association (NGA), the trade association representing the independent supermarket industry, released an industry statement, approved by its Board of Directors, outlining guiding principles on pricing technology, from electronic shelf labels and loyalty programs to artificial intelligence and the handling of customer data.

In the statement, “Commitment from America’s Independent Grocery Industry on Pricing Technology,” independent grocers endorse innovation that keeps food affordable, reduces waste, and enhances the shopping experience. They insist that retailers use these pricing tools responsibly and transparently. The statement centers on four core values: fair treatment of customers, shared savings, full transparency, and strong data privacy.

As policymakers and consumers increasingly examine how technology affects grocery prices, NGA’s statement reinforces independent grocers’ longstanding commitment to fair, transparent pricing and innovation that benefits shoppers.

“Independent grocers earn their customers’ trust one shopping trip at a time, and as technology continues to evolve, our industry’s commitment to putting customers first remains unchanged,” said Greg Ferrara, president and CEO of NGA. “Independent grocers are family-run, privately held, or employee-owned businesses that live and work alongside the people they serve. This statement puts in writing what independent grocers practice every day. New technology should help families save money and make the store better for the people who shop there.”

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In the statement, independent grocers oppose using personal data to charge customers higher personalized prices, while reaffirming their commitment to fair and transparent pricing. They also emphasize that grocers must make loyalty programs voluntary, clearly explain enrollment benefits, and let shoppers opt out at any time. Finally, the statement asserts that retailers must handle customer data responsibly, comply with the law, and earn long-term consumer trust.

The statement also describes an electronic shelf label as a price tag used to update prices and discounts quickly and accurately, “not to change prices based on who is in the aisle.”

“There’s an important distinction between technology that helps grocers lower prices and practices that use personal information to charge shoppers more,” said NGA Head of Government Relations Stephanie Johnson. “We should be encouraging innovation that makes groceries more affordable and shopping more convenient, while ensuring consumers are treated fairly and their privacy is respected.”

The statement notes that individual retailers independently determine their own prices and business practices based on their unique circumstances, and that putting people first will continue to guide independent grocers as grocery retail evolves.