San Diego is poised to become the first city in the U.S. to prohibit grocery stores from providing digital-only coupons, citing concerns about internet and smartphone accessibility for some shoppers.
The proposed ban aims to compel grocery stores to offer paper coupons to all customers, particularly older shoppers who may be less adept with technology. However, grocery trade organizations are opposing the new legislation.
While grocery stores continue to distribute coupons via mail or as newspaper inserts, the industry has shifted towards catering to consumers through mobile applications and email for digital deals.
According to a recent CapitalOne Shopping report, 91% of Americans utilized at least one coupon in 2022, with over 178 million adults redeeming a digital coupon, which encompasses downloadable coupons, mobile coupons, coupon codes, and automatic discounts.
The number of adults using digital coupons has consistently increased by as many as 10 million each year from 2015 to 2022.
Many of these offers, particularly for grocery customers, typically require users to create an online account or link their existing membership with an online profile.
San Diego City Councilmember Sean Elo-Rivera points out that this creates a digital barrier for residents lacking internet or smartphone access, as well as for English-language learners or those hesitant to share personal information online.
Who misses out on digital-only deals
In Elo-Rivera’s 9th District, he identifies three key demographics missing out on savings from online-only deals.
The first group consists of older adults aged 65 and above, living on fixed incomes. This segment accounts for 14% of the city, many of whom lack technological proficiency. Elo-Rivera noted that his ban is supported by the nonprofit Serving Seniors, whose members often struggle to access online discounts.
The second group includes individuals born outside the U.S. whose first language is not English. The Employee Rights Center staff informed Elo-Rivera that immigrant and refugee community members “don’t necessarily have the language skills to navigate the complex [online] systems needed to obtain [online deals or coupon] prices,” he stated.
Lastly, Elo-Rivera highlights that around 53,000 households in San Diego lack internet access.
He also referenced a 2022 AARP report indicating that 25% of older Americans lack internet connectivity, with 39% not owning a mobile phone, thereby making digital coupons unattainable for many seniors. AARP California has publicly endorsed Elo-Rivera’s ordinance.
These figures, sourced from the Pew Research Center, have been updated: currently, 30% of older adults lack internet access, and 24% do not have smartphones.
How the city of San Diego wants to bridge the digital divide
To address the digital divide, Elo-Rivera co-authored the digital coupon ban with the objective of making discounts accessible to everyone, including individuals unable to navigate online deals.
This initiative strives to create equitable access to savings amid rising food costs, as reported by Nielsen IQ. Data collected from March 9, 2024, to March 1, 2025, indicates that the price of chicken breast increased by $0.30 per pound, averaging $5.75 per pound, while the price of a loaf of bread rose by $0.06, resulting in an average cost of $3.06 per loaf.
According to the California Grocers Assn., there is a need for more information regarding how shoppers are impacted by digital incentives and whether alternative solutions could address the issue without implementing a ban, said spokesperson Nate Rose.
“Can the city find another way to tackle the digital divide, perhaps through training or assistance programs?” Rose queried.
Grocers were not included in discussions with Elo-Rivera and the city, and many supermarket chains were unaware of the ordinance until its initial passage on Monday, despite public notices since October.
Replacing online deals with print coupons available to everyone undermines the value of loyalty programs, Rose argued.
“From the grocer’s perspective, it feels contradictory to reduce environmental impact while simultaneously requesting the printing of thousands of coupons,” he said.
Grocers contacted by the association have indicated they are unprepared to make such adjustments exclusively for stores within San Diego while continuing to operate normally in surrounding areas, Rose stated.
“We are hoping the city reconsiders this decision,” he added.
In 2022, consumer advocates urged major supermarket chains to make digital coupons widely available, leading Stop & Shop, the largest chain in the Northeast, to set up kiosks in 2024 where customers can scan their loyalty rewards cards or enter their phone numbers to access “digital coupons and activate personalized offers based on their shopping history.”
When does this ban go into effect?
The ordinance is set to be reviewed by the City Council for a second reading and final approval in two weeks. Upon passage, San Diego grocers will have 90 days to comply.
How will this ban be implemented?
The ordinance does not specify how grocers are to comply with the upcoming law.
Elo-Rivera suggested several ideas for grocer compliance, including:
- Providing a small booklet of coupons at grocery stores.
- Offering physical coupons near relevant products on shelves, akin to a coupon dispenser.
- Creating a booklet of online coupons that cashiers can scan during checkout.
