Democratic Congresswoman Rashida Tlaib recently raised concerns about Kroger's plan to implement dynamic pricing and facial recognition in its stores. Tlaib addressed her worries in an October 11 letter, referencing the use of electronic shelf labels (ESLs) and cameras, which could adjust prices based on various factors like time and weather. The plan is part of Kroger's partnership with Microsoft to introduce AI-powered technologies for personalized pricing.
Tlaib, representing Michigan with 120 Kroger locations, highlighted the risks of racial bias in facial recognition technology, especially in communities of color. "The racial biases of facial recognition technology are well-documented and should not be extended into our grocery stores," she wrote. Tlaib is also concerned about the potential for ESLs to build personalized customer profiles, which could allow Kroger to "determine the maximum price of goods customers are willing to pay."
Kroger, the largest grocery chain in the U.S., denied claims that ESLs would be used for surge pricing, insisting its pricing strategy aims to lower costs for consumers. "To be clear, Kroger does not and has never engaged in 'surge pricing.' Any test of electronic shelf tags is designed to lower prices for more customers where it matters most," the company stated.
Tlaib's letter follows similar concerns from Senators Elizabeth Warren and Bob Casey, who, in August, warned that facial recognition could be used to "exploit sensitive customer data." They also raised fears that dynamic pricing in grocery stores could resemble the airline industry's ticket pricing strategies, creating unnecessary urgency for customers.
Kroger is also under scrutiny for its $24.6 billion merger with Albertson's, which has raised anti-trust concerns. The FTC is currently challenging the merger, arguing it could harm competition and lead to higher prices.
Link: Gizmodo
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