San Diego is on the way to becoming the first city in the nation to ban grocery stores from offering digital-only coupons, citing a lack off access to the internet and smartphones by some shoppers.
The ban is designed to force grocery stores to provide paper coupons to everyone, including elderly shoppers who are not as tech savvy as younger shoppers. But trade groups for grocers are pushing back on the new law.
While grocers still distribute coupons through mailboxes or as inserts in a newspaper, the deals have evolved to meet consumers on their smartphones through mobile apps and email inboxes.
In 2022, 91% of Americans used at least one coupon and more than 178 million adults in the United States redeemed a digital coupon (which includes downloadable coupons, mobile coupons, coupon codes and automatic discounts), according to a recent CapitalOne Shopping report.
The number of digital coupon users has steadily grown by as many as 10 million adults each year from 2015 to 2022.
Some of these deals, and in particular for grocery store customers, often require desktop or app users to create an online account or to link their existing membership number with an online profile.
That’s where San Diego City Councilmember Sean Elo-Rivera says there is a digital barrier for residents who lack internet or smartphone access, who are English-language learners or are weary of sharing their personal information online.
Who misses out on digital-only deals
In Elo-Rivera’s jurisdiction, the city’s 9th District, he said three prominent groups are missing out on money-saving coupons because of online-only deals.
The first comprises older adults, 65 years and older, living on a fixed income. It is a population that makes up 14% of the city, including many who might not be technologically savvy. He told The Times that his ban was supported by the nonprofit Serving Seniors, whose members and volunteer staff have encountered issues with getting online deals.
The second group is made up of individuals who were born outside of the United States and whose first language isn’t English. Staff from the Employee Rights Center told Elo-Rivera that immigrant and refugee community members “don’t necessarily have the language ability to navigate the complex [online] system that’s required to access the [online deal or coupon] price,” he said.
Lastly, Elo-Rivera points to San Diego residents who lack internet access, which is about 53,000 households, according to the council member’s office.
He also pointed to a 2022 AARP report that stated 25% of older adults in the nation lacked internet connectivity and 39% are without a mobile phone, thus making digital coupons out of reach for older Americans. AARP California has publicly supported the council member’s ordinance.
Such statistics, which came from the Pew Research Center, have since been updated: 30% of older adults lack internet connectivity and 24% are without smartphones.
How the city of San Diego wants to bridge the digital divide
To combat the digital barrier, Elo-Rivera co-authored the digital coupon ban with the goal of making the discounts available to all — including those who aren’t able to navigate or don’t have access to the online deals.
The effort to create equity on customer deals comes at a time when the cost for food staples continues to rise, according to the Nielsen IQ. Data gathered at the checkout counter between March 9, 2024, and March 1, 2025, showed that chicken breast prices rose by $.30 per pound, reaching an average of $5.75 per pound. The cost of a loaf of bread increased by $0.06, meaning consumers pay an average of $3.06 per loaf.
The California Grocers Assn. wants more information on how shoppers are affected by digital incentives and whether there are other alternatives to solving the problem instead of adopting a ban, said Nate Rose, spokesperson for the group.
“Is there another way for the city itself to tackle the digital divide with training or an assistance program?” Rose asked.
Grocers weren’t asked to be a part of the conversation with Elo-Rivera and the city, and many supermarket chains were not aware of the ordinance prior to its initial passage on Monday despite the city releasing public notices since October.
To completely replace online deals with print coupons that are available to everybody negates the point of loyalty programs, said Rose.
“From the grocery point of view, [there’s] a lot of whiplash of mixed messages from reducing your environmental footprint but by the same token please print thousands of coupons,” he said.
Grocers who have been contacted by the association say they are not ready to make such changes exclusively for stores in the city of San Diego but not for stores in neighboring cities, Rose said.
“We’re hoping the city steps back from this, honestly,” he said.
In 2022, consumer advocates called on major supermarket chains to make digital coupons available to all, according to the Massachusetts Public Interest Network. In response, Stop & Shop, the largest chain in the Northeast, established kiosks in 2024 where customers can scan their loyalty rewards card or enter their phone number to access “their digital coupons and activate personal offers based on their shopping history.”
When does this ban go into effect?
The ordinance will go before the City Council for a second reading and final approval in two weeks. After it becomes a law, grocers in San Diego have 90 days to comply.
How will this ban be implemented?
The ordinance doesn’t define how grocers must abide by the forthcoming law.
Elo-Rivera shared some ideas for how grocers can abide by the law, including providing:
- A small booklet of coupons at the grocery store.
- Physical coupons offered near the items on the shelf — similar to a coupon dispenser.
- A booklet of the online coupons that a cashier can scan for grocers at the register.
