Letter to supermarkets: Stop digital-only savings discrimination (2024)

Letter to supermarkets: Stop digital-only savings discrimination (1)

As Americans grapple with record inflation in grocery prices, many turn to digital coupons to save on their supermarket bills. But those digital-only offers often exclude those who are hardest hit by the rising cost of food and other household staples, consumer advocacy groups say.

In an open letter to the supermarket industry dated Nov. 15, a coalition of national consumer advocacy groups said the digital-only offers "digitally discriminate," shutting out plenty of shoppers — especially those who are elderly, have limited incomes or lack access to the internet or a smartphone.

"It’s digital discrimination, and the most vulnerable people are being shut out of these online discounts at the worst possible time given record high inflation," Edgar Dworsky, founder of Consumer World website, said in a statement. "Big supermarkets need to provide an offline alternative to the digitally-disconnected so they can reap the same savings that connected shoppers enjoy."

For example, Kroger stores recently advertised a digital offer on sweet potatoes for 19 cents a pound. In order to get that price, customers needed to download a digital coupon online to loyalty cards or via an app on a smartphone. The regular sale price, according to the sale circular, was 99 cents per pound.

The group’s letter to supermarket executives urged them to adopt ways to allow the digitally disconnected to access those savings. Not being able to access those digital deals results in higher grocery costs, the group said in its letter to Kroger, Albertsons, Stop & Shop, Star Market/Shaw’s, Ralphs, QFC, Jewel Osco, Randalls, Fred Meyer, King Soopers, Smart & Final, and Safeway.

Reached by phone Saturday evening, Dworsky said he has only heard from Albertson's. Dworsky said they thanked him for the letter and stated that "our online/mobile coupons are featured in our weekly circular to help drive digital and in store engagements. For seniors who may not have digital access they are welcome to present the circular/ad to the cashier for discounts at the register. "

The Free Press has reached out to Kroger, which has more than 100 locations across Michigan, for comment.

Consumer Action, Consumer Reports, National Consumers League and Public Interest Research Group (PIRG) worked with Dworsky, a lawyer and longtime consumer advocate who initiated the project.

Dworsky's website reports on a variety of consumer news. Dworsky also foundedmouseprint.org, a website dedicated to tracking consumer pricing, exposing fine print in advertisem*nts, product claims and more.

In its letter, the coalition cited a 2021 Pew Research Center study that found 25% of seniors don't use the internet and 39% don't have smartphones. Pew's study also found that 43% of low-income households "lack broadband internet access."

Consumers without internet access are not the only ones who miss out on digital savings, according to a Consumer World survey.

"One in four shoppers who, despite having online access, say they may lack the technical ability to use a supermarket’s website or app," the survey found.

The coalition's letter said the advocacy groups focused on digital versions of store-issued coupons and featured sale items that included name-brand products. It also provided examples of significant savings that the "unplugged shopper" missed out on because the shopper couldn't clip the required digital coupon. Among them: A digitally disconnected customer could pay as much as $9 more for a package of steak and $15 more for a 15-pound turkey.

Here are alternative methods outlined in the letter to supermarket executives allowing "digitally challenged" to take advantage of digital savings:

  • Barcoded “clip or click” store coupons in store circulars.
  • Allow cashiers to charge the digital price upon request, or upon presentation of a digital pass.
  • Provide refunds for missing digital discounts.
  • Offer physical store coupons next to digital-only deal products for those who did not/could not electronically “clip” the offer.
  • Install coupon kiosks where digital coupons can be added to one’s account in-store.

The letter noted that some supermarkets have initiated some of the above practices.

"We are asking you to help bridge this digital divide to the extent that at least some of your stores promote 'digital-only' deals by offering an offline alternative by which the digitally disconnected can benefit from all the grocery sale prices you advertise each week,” the letter stated."

The letter also made clear that the advocacy groups are referring to sale items featured in store circulars, TV advertising, store signs and on shelf tags that "promote a final price available only after loading that offer electronically onto one’s store loyalty card or account."

Contact Detroit Free Press food writer Susan Selasky and send food and restaurant news to:sselasky@freepress.com. Follow @SusanMariecooks on Twitter.

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Letter to supermarkets: Stop digital-only savings discrimination (2024)

FAQs

Are digital coupons a form of price discrimination? ›

Coupons are a common marketing strategy that can also be seen as a form of price discrimination. Price discrimination is when a seller charges different prices to different customers for the same or similar product, based on their willingness or ability to pay.

Why do supermarkets use digital coupons? ›

Expanding Shopper Engagement Opportunities

Coupons can help drive incremental shopping trips and bigger basket sizes. And, as people have become comfortable with the digital ecosystem, more shoppers are looking online for savings. In the past decade, digital coupon use has seen impressive growth in the grocery sector.

Are grocery coupons an example of price discrimination? ›

Two common examples of indirect price discrimination are coupons and quantity discounts. Coupons offer discounts for products and are especially common in grocery stores, where they are usually provided in a free newspaper section at the front of the store. Coupons discriminate on the basis of the cost of time.

What does "digital only" mean at a grocery store? ›

Digital-only deals — advertised online or on store shelves — can offer significant savings, but they generally require customers to electronically clip a coupon in a grocer's app or on its website.

Do you have to print digital coupons? ›

If you're shopping in-store, digital coupons can be printed out or you can present the coupon on your phone at the register. If you're shopping online, simply enter the e-coupon code at checkout.

How to get digital coupons without a smartphone? ›

Also, some stores ask for a smartphone number to send you a sign-up code. If you don't have a smartphone, you can give the number of a friend or family member, then ask that person for the code they've received and use it to complete your registration on the store's website.

What is an example of a price discrimination product? ›

Examples of forms of price discrimination include coupons, age discounts, occupational discounts, retail incentives, gender based pricing, financial aid, and haggling.

Are discount coupons available free to the public a type of price discrimination? ›

Price discrimination is a strategy used by sellers to sell the same product at different prices to different customers, depending on what they think the customer can pay. Coupons are a form of Second-degree price discrimination.

Why are coupons effective at price discriminating across consumers? ›

Answer and Explanation:

Coupons essentially allow for price discrimination by having the customers self-select themselves. Customers who are not willing to pay as much will use the coupons and pay the lower price. However, those who are willing to pay more will not use the coupon and will pay the higher price.

References

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