California’s effort to limit paper receipts falls short, risks unintended consequences
Retailers have faced no shortage of adversity these past few years. From COVID pressures to retail theft to customers struggling with soaring inflation, local store operators find themselves on the frontlines of some of society’s thorniest challenges.
Now add state-elected officials to the list of issues making business more difficult for retailers, grocers, restaurants and their shoppers. The latest move from Sacramento comes in the form of Assembly Bill 1347, which would limit printing in-store coupons and proof-of-purchase receipts.
AB 1347 would have negative consequences for consumers, especially those who are low-income or do not have easy access to online banking, and it exacerbates personal data privacy concerns.
Government assistance
One of the main reasons grocers oppose the bill is it interferes with federal guidelines that require paper receipts for WIC and SNAP recipients. The federal government has specific regulations around receipts for purchases made with WIC (Women, Infants, and Children) and SNAP (Supplemental Nutrition Assistance Program) benefits. They require retailers to provide a physical receipt containing specific information—such as the customer’s name and quantity of benefits-eligible items purchased—for every WIC or SNAP transaction.
These regulations exist to ensure that WIC and SNAP participants receive the correct benefits and to prevent fraud and abuse of the program. Food retailers comply with these regulations so they can continue to participate in government programs and provide access to healthy food for low-income individuals and families. AB 1347 threatens local retailers’ participation in the SNAP and WIC programs.
Coupons
AB 1347 would ban the practice of printing coupons under or on the back of paper receipts. Thus, consumers would either not get coupons for their next purchase or be in a position to specifically ask for them, unfairly singling out those consumers who need them. Additionally, the bill pushes retailers into providing a receipt AND a coupon—generating two pieces of paper instead of one which undermines the bill’s stated goal of waste reduction.
Retail theft
Retailers that offer electronic receipts must ensure that those receipts are secure and that the privacy of the customer’s personal and financial information is protected. In fact, printed receipts are hugely important to combat retail theft, which is on the rise in California. With paper receipts, there is a tangible record of each transaction that can be used to track and prevent theft. Electronic receipts, on the other hand, can be more easily manipulated or lost, leading to more theft and loss of revenue for stores.
Printed receipts are typically used to reconcile sales and inventory records, allowing store managers to identify discrepancies and investigate possible causes. For example, if a cashier is consistently ringing up fewer items than are listed on the receipt, this could be a sign that something is wrong. Discouraging the use of receipts will only exacerbate the problem of retail theft.
The bottom line is that paper receipts are an essential record of purchase for many local retailers and consumers, especially those who rely on cash transactions or do not have easy access to online banking services. Without paper receipts, these consumers will have difficulty tracking their spending, returning or exchanging items, or submitting expense reports for work. The reality is that not all consumers have access to smartphones or email, and even those who do may have concerns creating a permanent digital record for all of their purchases.
AB 1347 is a misguided attempt to address paper waste while ignoring the real-world hardships the bill would levy, especially on low-income and underserved communities that rely on coupons and receipt tracking. The bill cleared its first major hurdle, passing out of the State Assembly in late May, and is now moving through the Senate for further debate.
We urge the Legislature to reconsider this ban on paper receipts. Instead, focus on alternative strategies that reduce waste and protect the environment that do not negatively impact working Californians and the businesses that serve them.
Jeffrey Ball is the President and CEO of Orange County Business Council. Gregory C. Scott is the President and CEO of Community Action Partnership of Orange County.