Kroger's Intended Implementation of Facial Recognition Technology Sparks Conversations on Price Surges
In the world of grocery shopping, a major player, Kroger, is facing criticism from Democratic lawmakers over its plans to implement dynamic pricing and facial recognition technology. The concerns centre around potential exploitation of customer data, discrimination, and privacy issues.
Senators Elizabeth Warren and Bob Casey, along with Representative Rashida Tlaib, have expressed their worries in separate letters. The crux of the issue lies in Kroger's intention to use facial recognition technology to adjust grocery prices based on customer demographics, a practice often referred to as "surveillance pricing." This method involves offering or setting customized prices tailored to individual consumers' demographic or behavioral data, potentially leading to discriminatory pricing.
Kroger's plan includes the use of Enhanced Display for Grocery Environment (EDGE) shelf displays that would capture customer information, including images of faces. The lawmakers are concerned that this could lead to the building of personalized profiles of each customer and the determination of the maximum price of goods they are willing to pay.
The concerns also extend to the potential use of these technologies for surge pricing, where prices could fluctuate based on factors such as time of day, location, or customer behaviour. This practice has been compared to the urgency and scarcity tactics often seen in airline ticket pricing.
In response, Kroger has stated that any tests of dynamic pricing are aimed at lowering prices for more customers. However, the specific company statements or detailed responses to these legislative concerns were not readily available. Kroger's own privacy policy does indicate some level of data governance, but the scrutiny from lawmakers suggests that existing privacy measures may be insufficient or inadequately transparent about the use of biometric data for pricing purposes.
The ongoing scrutiny is highlighted by the proposed bans on surveillance pricing like California’s AB 446, which aims to prevent such practices. This regulatory response underscores the seriousness of these concerns.
The merger of Kroger and Albertson's is also under increased scrutiny, with the FTC challenging the merger and arguing it would reduce competition and raise prices for consumers.
In summary, the use of facial recognition for demographic-based dynamic pricing raises significant concerns about discrimination, consumer privacy, and surveillance pricing. The legislative response includes proposed bans and calls for greater transparency and fairness. Kroger’s response, while not explicitly detailed, suggests a voluntary use of facial recognition for pricing purposes, but with privacy policy measures in place. The ongoing scrutiny and potential future regulatory pressure are clear indicators of the ongoing debate surrounding these issues.
[1] https://www.nbcnews.com/tech/tech-news/kroger-uses-facial-recognition-tech-set-custom-prices-customers-n1237786 [2] https://www.washingtonpost.com/business/2021/09/28/kroger-facial-recognition-technology-surveillance-pricing/ [4] https://www.kroger.com/topic/privacy-policy
- The tech world is abuzz with discussions about Kroger's future plans to implement artificial intelligence and facial recognition technology in its grocery stores.
- These technologies, which include dynamic pricing, have drawn the attention of lawmakers from various political spheres, raising concerns about data privacy, discrimination, and policy-and-legislation.
- Gizmodo reports that Senators Elizabeth Warren, Bob Casey, and Representative Rashida Tlaib have expressed their worries in separate letters, highlighting potential issues such as the building of personalized profiles of customers and discriminatory pricing.
- The use of Enhanced Display for Grocery Environment (EDGE) shelf displays, which capture customer information including images of faces, has fueled these concerns, leading to questions about the company's data-and-cloud-computing practices.
- Business strategists argue that Kroger's intention to use this technology could lead to surge pricing, with prices fluctuating based on factors like time of day, location, or customer behaviour, similar to airline ticket pricing.
- In light of these concerns, legislative bodies are considering bans on surveillance pricing, such as California’s AB 446, underscoring the gravity of these issues in the realm of general-news and politics.
