Michigan dynamic pricing ban could lead to more food waste

(The Center Square) – A bill aimed at keeping food costs down for low-income mothers and their children could change how some supermarkets in Michigan operate.

HB 5981, introduced by state Rep. Mike McFall, D-Hazel Park, would prohibit retail grocery stores from using dynamic pricing “in the sale of food that is sold, or qualifies to be sold, as part of the special supplemental food program for women, infants, and children (WIC program).”

Dynamic pricing involves changing prices based on market fluctuations involving supply and demand, the season, supply chain issues or consumer trends.

WIC is a federally funded health and nutrition program for low-income pregnant, postpartum and breastfeeding women and children ages five and under who are at nutritional risk. Besides infant formula, foods that qualify to be sold as part of the WIC program include milk, cheese, yogurt, eggs, meats, fresh fruits and vegetables, peanut butter, hot and cold cereals, juices, whole wheat breads and buns, pasta, brown rice, corn and wheat tortillas, soy beverages, canned fish, and canned or dry beans, peas, and lentils.

Retail grocery stores often use dynamic pricing strategies to manage perishable inventory – such as meats and fresh produce – that have a limited shelf life, according to Harvard Business School.

But the bill would prohibit Michigan retailers from doing so on food items that fall under the WIC-qualifying list, potentially resulting in more food waste.

Retailers using dynamic pricing on such items could be subject to a civil fine of up to $5,000 per item per day the dynamic pricing remains in effect.

The Michigan WIC program provides food to more than 200,000 mothers and children in the state each month.