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Consumer Coalition Says Digital Discounts Have Discriminatory Effect

Specialty Food Association

A coalition of consumer groups wrote an open letter to supermarket leaders asking them to stop the use of digital-only discounts due to what they call the discriminatory effect on senior citizens and low-income shoppers. The coalition, made up of Consumer Action, Consumer Reports, Consumer World, National Consumers League, and PIRG advocated, instead, to adopt a workaround to democratize grocery savings.

Many senior citizens and lower-income families cannot take advantage of a new wave of in-store digital-only discount options because of a lack of consistent internet access and smartphone use. According to a 2021 study by Pew Research Center, 25 percent of seniors do not use the internet and 39 percent don’t have smartphones. The study also found that 43 percent of low-income households lack broadband internet access.

“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,” said Edgar Dworsky, founder of Consumer World, 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.”

The blog post author cited an influx of weekly specials that require shoppers to first go online to electronically "clip” the offer to add them to their loyalty card account in order to receive the sale price.

As an alternative, the consumer groups suggested the following strategies:

• Use barcoded coupons in circulars

• Allow cashiers to charge the digital price on request

• Allow cashiers to provide refunds for unredeemed digital discounts

• Offer physical coupons next to digital-only deals

• Install coupon kiosks where digital coupons can be added to an account in-store

The letter was sent to executives at Kroger, Albertsons, Stop & Shop, and others.

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