Kroger fires back at Rashida Tlaib over accusations of implementing facial recognition surge pricing for groceries
Rep. Rashida Tlaib Accuses Kroger of Potential Price Gouging Through Facial Recognition Technology
Rep. Rashida Tlaib (D-Mich.) is raising alarm over Kroger's plans to implement facial recognition technology, suggesting it could lead to price gouging for shoppers. In a post on X (formerly Twitter) on Tuesday, Tlaib expressed concern for families struggling to afford groceries, stating, "I sent a letter to Kroger about their decision to roll out surge pricing using facial recognition technology. Facial recognition technology is often discriminatory and shouldn’t be used in grocery stores to price gouge residents."
Tlaib's letter referenced Kroger's partnership with Microsoft to deploy EDGE smart shelves, which use facial recognition to display personalized offers and advertisements. While Kroger claims this technology enhances the shopping experience and reduces waste, Tlaib fears it may instead lead to inflated prices, particularly for vulnerable communities. "Studies have shown that facial recognition is flawed and can lead to discrimination in predominantly Black and brown communities," she wrote. "The racial biases of facial recognition technology are well-documented and should not be extended into our grocery stores."
She further warned that the technology might be exploited for profit, potentially raising prices on essential items in neighborhoods with limited grocery options. Tlaib is not alone in her concerns; in August, Senators Elizabeth Warren (D-Mass.) and Bob Casey (D-Pa.) expressed similar apprehensions, suggesting that digital price tags could enable large grocery chains to hike prices at opportune moments—such as raising turkey prices before Thanksgiving or ice cream prices on hot days—leading to unexpected financial burdens for consumers.
The senators highlighted testimony from critics who warned that the technology could be used to assess how much customers are willing to pay, effectively allowing stores to adjust prices in real time based on perceived demand.
Facial recognition technology is increasingly being adopted by major retailers, with companies like Walmart, Macy’s, and Albertson’s also implementing similar systems. However, Kroger has pushed back against the allegations of price gouging. A spokesperson stated, “Kroger’s business model is built on a foundation of lowering prices to attract more customers. Everything we do is designed to support this strategy.” They clarified, “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. To suggest otherwise is not true.”
As discussions about the ethical implications of facial recognition technology continue, the potential impact on consumer pricing remains a contentious issue.
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