Link: As Kroger and Walmart roll out electronic shelf labels, US lawmakers worry that the tech could allow for dynamic pricing; both deny plans to add dynamic pricing (Sara Ruberg/New York Times)

Congress members express concerns about supermarkets like Kroger using digital price tags for dynamic pricing. They fear prices for essentials could change frequently based on demand.

Kroger and Walmart counter that they do not plan to use dynamic pricing or facial recognition to influence prices. However, the use of such technologies broadly remains a concern.

Kroger claims the adoption of electronic shelf labels (E.S.L.s) has environmental and operational benefits. Meanwhile, their prices are said to alter only to offer discounts or manage expiring products.

Experts argue that dynamic pricing, as enabled by digital tags, generally does not lead to higher costs. Research in Europe shows prices tend to decrease and sales volumes increase with E.S.L. usage.

Privacy issues garner attention with the potential use of AI and recognition technologies in stores. Kroger assures it has halted all pilot initiatives relating to facial recognition due to technical issues.

Federal regulations are lax on disclosing the use of such technologies in commercial settings. Economists and data privacy experts call for clearer consumer information on tech use in retail.

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