Lawmakers consider temporary moratorium on retailers' dynamic pricing, electronic shelf labels

Rep. Will Greer introduced H.371, a bill that would impose a temporary moratorium on the use of electronic shelf labels and retailer “dynamic pricing” for consumer commodities in Vermont until Jan. 16, 2027, while the Agency of Agriculture studies the technology and issues recommendations.

Greer told the committee the bill “in its current form is not a ban. It's just simply a moratorium so that we can study this more,” and cited consumer polling and federal inquiries as reasons to pause local implementation of the technology.

The bill, as described by committee counsel Michael Grady, would amend the state’s unit-pricing chapter in Title 6 to define “dynamic pricing” and “electronic shelf labels,” allow electronic shelf labels to display retail and unit prices, but prohibit retailers from changing a displayed retail price or unit price while the store is open to the public. "A retailer shall not alter the retail price or unit price of the commodity until at least 24 hours since the last alteration to the retail price or unit price for the consumer commodity," Grady said, describing a 24-hour restriction included in the draft language.

Grady told the committee the bill also establishes a moratorium period tied to a required report from the Agency of Agriculture. The bill would require the agency to report on the use of electronic shelf labels and dynamic pricing on or before Jan. 15, 2026, including a summary of how the technology operates and a review of national and state regulatory standards — including whether guidance from entities such as the National Institute of Standards and Technology exists — and to recommend whether and how the technology should be permitted. The allowance for electronic shelf labels and dynamic pricing in the bill would not take effect until Jan. 16, 2027.

Greer framed the measure as a consumer-protection step, citing survey findings he said showed broad consumer concern: “Majority of U.S. consumers, 62% find that dynamic pricing is unfair … and only 17% of consumers consider it to be fair,” he told the committee. He also noted inquiries from U.S. senators and the Federal Trade Commission into grocery chains' use of electronic shelf labels, and quoted the senators' warning that, in their words, “dynamic pricing allows corporations to … price gouge and suddenly raise the cost of goods without warning.”

Counsel noted reasons retailers use electronic shelf labels, including labor savings and price-update efficiency, but said the unit-pricing rules in Title 6 exist to provide consumers with accurate unit and total prices for consumer commodities. Counsel said the draft bill is intended as a stopgap to allow the agency to develop a fuller regulatory proposal in 2026 or 2027.

Committee members asked whether the bill would cover price changes initiated by a retailer's out-of-state headquarters and whether the proposal would catch corporate-wide, remote price changes; counsel replied the proposed language applies to any person selling a consumer commodity in the state and does not require that the person who changes a label be physically located in Vermont.

No formal vote or committee action on H.371 was recorded during the discussion. The committee scheduled further bills for the afternoon and did not take final action on this measure during the session recorded in the transcript.

The bill text, as summarized in the committee exchange, contains: a definition of dynamic pricing and electronic shelf labels; a prohibition on altering a displayed retail or unit price while a retail establishment is open to the public; a 24-hour minimum interval between price alterations for a given consumer commodity; a reporting requirement for the Agency of Agriculture due Jan. 15, 2026; and an effective date permitting use of the technology on Jan. 16, 2027, should the agency recommend it.