Members of Congress are raising the alarm about new technology at supermarkets: They say Kroger and other major grocery stores are implementing digital price tags that could allow for dynamic pricing, meaning the sticker price on items like eggs and milk could change regularly.
They also claim data from facial recognition technology at Kroger could be considered in pricing decisions.
Kroger denied the claims, saying it has no plans to implement dynamic pricing or use facial recognition software. Walmart also said it had no plans for dynamic pricing, and that facial recognition was not being used to affect pricing, but the company did not specify whether the tool was being used for other purposes.
Both Walmart, which has 4,606 U.S. stores, and Kroger, which has nearly 2,800 U.S. stores, also suggested that the effects of digital price tags are being exaggerated, and economic experts say that most grocery bills won’t be higher as a result of the tags. Still, data privacy experts have concerns about new technology being implemented at grocery stores broadly.
Here’s what to know.
What exactly are digital price tags?
Electronic shelf labels, or E.S.L.s, show the price and unit for a product on a digital screen rather than on paper or a sticker. They are already in place at Kroger stores as part of a pilot program, though the company would not specify at how many stores. Walmart announced in June that it would deploy its own E.S.L.s to 2,300 stores by 2026.
Kroger has said the new labels are more environmentally friendly, and that using them has saved time for employees.
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