Digital-Only “Grocery” Coupons & Discounts Now Only as Good as the Paper They Are Printed on in San Diego

By: Rosanne Yang and John Allaire

Are you operating a brick and mortar retail store in San Diego?  Is it a “grocery” store, which is broadly defined to include stores selling not just traditional groceries but also paper/plastic products, diapers, cleaning agents, non-prescription drugs, bandages, female hygiene products, or toiletries?  If so, pay attention: under a new ordinance taking effect July 14, 2025, digital-only discounts (e.g., those available only via email, text message, apps, QR codes, or websites) are essentially prohibited.

There may be more like this coming too.  New Jersey, Washington, Illinois, and Massachusetts have introduced similar legislation.

Compliance Requirements

Under the law, “grocery stores” that offer discounts exclusively through digital means must do the following:

1. Display the Discount Price in Stores. The digital discount price must be clearly shown where goods are displayed or on each individual item offered for sale.

2. Display Notice in Stores Demonstrating Compliance with the Law. Grocery stores must post a sign or notice in a location visible to consumers (e.g., at the checkout) stating the following:

Fair Pricing for All: Your Right to Equal Discounts - Under San Diego law, all digital discounts must also be available as physical coupons. Violations of this law are subject to San Diego Municipal Code section 311.0104.

3. Provide Identical Physical Coupons to Consumers Upon Request.  It is not clear what “upon request” means here or how San Diego will look for that to be implemented.  Compliance with this requirement will require careful navigation to ensure that the affected items are not considered to be “on sale” in excess of the number of days permitted under California state law.

Penalties

Non-compliance with the ordinance can result in injunctive relief, consumer restitution, and fines up to $2,500 per violation, with potential additional penalties under state law.

Next Steps

  • Determine if you are an affected retailer.

  • Determine if you have digital-only promotions (including those offered to loyalty members) that may require paper-counterparts.

  • Determine how you will make the discounts available on paper, as well as how you will manage time on sale compliance.

  • Prepare the required notices, as well as instructions to and training for the affected stores including on such topics as customer assistance protocols.

  • Establish internal controls to ensure that digital-only discounts are identified for San Diego compliance on an ongoing basis.

Prices are an increasingly hot button issue.  Regulator attention is already on surveillance and dynamic pricing, and this move by the City of San Diego – and potentially some state legislatures – to address potential inequalities in pricing is not at all a surprise.  We expect that jurisdictions and regulators will continue to focus on ways to increase price fairness and transparency in the coming months and years.  Navigating these shifts will be important for retailers of all kinds.

Originally published by InfoLawGroup LLP. If you would like to receive regular emails from us, in which we share updates and our take on current legal news, please subscribe to InfoLawGroup’s Insights HERE.

Rosanne Yang & John Allairecoupons, retail, digital only discounts