San Diego is moving forward to become the first city in the country to ban grocery stores from offering digital-only coupons, citing lack of internet and smartphone access by some shoppers.
The ban is designed to force grocery stores to offer paper coupons to everyone, including older shoppers who are less tech-savvy than younger shoppers. But grocery store trade groups are pushing back new laws.
Grocers distribute coupons as inserts in their mailboxes or newspapers, but transactions have evolved to meet consumers on their smartphones via mobile apps and email inboxes.
In 2022, 91% of Americans used at least one coupon, and over 178 million adults in the US redeemed digital coupons (including downloadable coupons, mobile coupons, coupon codes and automatic discounts).
The number of digital coupon users has steadily grown from 2015 to 2022 by 10 million adults each year.
For some of these transactions, especially grocery customers, it is often necessary for desktop or app users to create online accounts and link existing membership numbers to their online profiles.
So San Diego City Councilman Sean Elo Livara says there is a digital barrier for residents who lack internet or smartphone access, English learners, or tired of sharing personal information online.
Those who missed digitally-only transactions
In the city’s ninth district of Elo-Rivera, the city’s nineth district, three prominent groups said they’re missing out on coupons that save money for online-only transactions.
The first one is made up of seniors over the age of 65 and live on bonds. It’s the population that makes up 14% of the city, including many people who may not be technologically savvy. He told the Times that his ban was supported by a nonprofit organization that serves seniors who have encountered problems with members and volunteer staff getting online transactions.
The second group consists of individuals born outside the United States and whose primary language is not English. Staff at the Employee Rights Center told Elo-Rivera that members of the immigrant and refugee community “doesn’t necessarily have the language ability to navigate the complex.” [online] Systems required to access [online deal or coupon] Price,” he said.
Finally, according to the office of council members, Elo-Rivera points to San Diego residents who lack internet access. This amounts to approximately 53,000 households.
He also pointed to the 2022 AARP report, which stated that 25% of seniors across the country lack internet connectivity and 39% have no mobile phones, leaving digital coupons out of reach for older Americans. AARP California publicly supports the councillor’s ordinance.
Such statistics from the Pew Research Center have since been updated. 30% of seniors lack internet connections, and 24% do not have smartphones.
How San Diego wants to bridge digital disparities
To combat the digital barrier, Elo-Rivera co-authored the Digital Coupons ban with the aim of making online transactions accessible to everyone, including those who are unable to navigate or access them.
According to Nielsen IQ, efforts to create fairness in customer transactions occur at a time when food staples continue to increase. Data collected at the checkout counter between March 9, 2024 and March 1, 2025 showed that chicken breast prices rose $0.30 per pound, reaching an average of $5.75. The cost of bread for bread has increased by $0.06. This means that consumers pay an average of $3.06 per bread.
Assn, a California grocery store. Group spokesman Nate Rose hopes for more information on whether shoppers are affected by digital incentives and whether there are other alternatives to address the issue instead of adopting a ban.
“Is there another way for cities themselves to tackle digital divides in training or support programs?” Rose asked.
The grocery store was not asked to be part of the conversation between Ero Rivera and the city. Many supermarket chains were not aware of the ordinance prior to their first passing Monday, despite having issued their first public notice since October.
Replacing online transactions entirely with print coupons available to anyone will deny the points of the loyalty program, Rose said.
“From a food perspective, [there’s] Whipping many mixed messages from reducing environmental footprints should print thousands of coupons with the same token,” he said.
Grocery stores contacted by the association are not ready to make such changes exclusively for their San Diego city stores, but say they are not in nearby cities, Rose said.
“To be honest, I hope that this city will retreat from now on,” he said.
In 2022, consumer advocates called on major supermarket chains to make digital coupons available to everyone, according to the Massachusetts Public Interest Network. In response, Stop & Shop, the largest chain in the Northeast, will establish a kiosk in 2024, allowing customers to scan their loyalty reward cards or enter their phone number to “access digital coupons and activate them to personal offers based on their shopping history.”
When will this ban be enacted?
The ordinance will proceed two weeks later to the city council for a second reading and final approval. Once that becomes law, San Diego grocery stores will comply for 90 days.
How is this ban enforced?
The ordinance does not define how grocery stores must comply with future laws.
Elo-Rivera shared some ideas about how grocery stores can adhere to the law.
A small booklet of grocery store coupons. Physical coupons offered near items on the shelf are similar to coupon dispensers. An online coupon booklet that lets cashiers scan grocery stores on registers.
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