Grocery stores adjust as San Diego’s digital-only coupon ban takes effect

SAN DIEGO (FOX 5/KUSI) — A first-in-the-nation law took effect in San Diego Wednesday that bans digital-only grocery coupons, but not all grocers are adjusting equally.

The Grocery Pricing Transparency Ordinance was spearheaded by councilmembers Sean Elo-Rivera and Marni von Wilpert and "ensures that if a discount is offered online or through an app, it must also be accessible in-store, with limited exceptions," according to a joint press release issued by the two city leaders.

“When you walk into a store that is complying with this ordinance you see how simple it is. It’s so easy to comply," said District 9 councilmember Sean Elo-Rivera.

The new law was created to provide fair access to grocery discounts for all San Diegans, including seniors, working families, and those without smartphones or reliable internet.

President and CEO of Serving Seniors, Melinda Forstey said the non-profit has been advocating for this type of change for years.

“Many of our seniors don’t have smart phones so they may not have access to scanning a QR code or opening up an app," said Forstey.

She added, “We do provide two meals a day here every day at Serving Seniors, but we know seniors need that third meal and with rising costs particularly around food this is a growing need.”

Some grocers, like Kroger-owned Food4Less and Ralphs, have printed out in-store flyers that match digital savings. 

The company provided FOX 5/KUSI with the following statement:

“To make it simpler for our customers to take advantage of digital coupons in our stores, we are providing an easy-to-use flyer they can scan at check out. Customer can simply grab a flyer in our stores or ask for help from one of our friendly clerks.”

However, an email to customers from Vons said all 29 San Diego stores, including Albertsons and Pavilions, are reducing the number of digital deals, noting some vendors and manufacturers have not provided alternatives. 

A company spokesperson released the following statement to FOX 5/KUSI:

"At Albertsons, Vons and Pavilions, we follow all laws and regulations. Starting Oct. 1, to meet the City of San Diego’s Digital Coupon Ordinance, our weekly ads now show digital coupons that customers can redeem in store by showing our printed circular to a cashier. Many coupons in our digital app are from manufacturers, and many manufacturers have not provided an in-store alternative. Because of this, we have had to remove those offers from our San Diego stores and our digital app to ensure parity for in-store customers. We appreciate the City of San Diego’s intent to ensure fairness to customers who may not use smartphones or apps. However, without a solution from manufacturers, the ordinance has resulted in limiting the number of discounts and coupons that all customers can enjoy in our San Diego stores. We apologize to our customers for any inconvenience this may cause, and we remain committed to following the ordinance."

Meanwhile, city leaders are expressing disappointment with some grocers' decision.

"I think it's an unfortunate choice because it kind of feels like a corporate temper tantrum to me," said Elo-Rivera.

Meanwhile, Executive Director of Public Affairs for the San Diego Chamber of Commerce, Justine Murray said they had concerns before the law took effect. 

“The more and more that we see policies that are brought to the table that don’t have every stakeholder at the table, that don’t have the business community, that don’t have every affected party at the table from the beginning -- the more we’re going to see policies that are well meaning have unintended consequences and have effects like these," said Murray.

City leaders said they worked with grocery industry insiders early on.

Meanwhile, some shoppers told us they'll feel it in regard to a reduction in digital coupons.

“I’m on a fixed income too. I just retired and that’s all I get so yeah, we’re watching our pennies too," said Vons shopper Kevin Duerre.

The city attorney’s office is in charge of enforcement. Anyone who suspects a store is not complying with the new law can report it. Once notified in writing, stores have 15 days to fix violations.

For additional questions or concerns, shopper can also contact the office by emailing cityattorney@sandiego.gov or calling 619-236-6220.