Kroger’s plans to roll out facial recognition at its grocery stores is attracting criticism from lawmakers, who warn it could lead to surge pricing and put customers’ personal data at risk
Kroger’s plans to roll out facial recognition tools at its grocery stores is attracting increased criticism from lawmakers, who warn that it could be exploited to increase the prices certain individuals pay for food and put customers’ personal data at risk.
In a letter Friday to Kroger CEO Rodney McMullen, Congresswoman Rashida Tlaib (D-MI) said the plans — which involve using facial recognition tools in digital displays to target advertising to customers and collect information on them — potentially pave the way for biased pricing discrimination.
“Studies have shown that facial recognition technology is flawed and can lead to discrimination in predominantly Black and Brown neighborhoods,” Tlaib wrote in the letter, which was posted on social media Tuesday. “The racial biases of facial recognition technology are well documented and should not be extended into our grocery stores.”
Kroger is the largest grocery store chain in the country with nearly 3,000 stores and $3.1 billion in profits in 2023. Kroger and other retailers already use electronic shelving labels instead of paper labels to rapidly adjust prices based on a variety of factors, including time of purchase, where a grocery store is located and other data.
The plan to use facial recognition technology could allow the retailer to build individual profiles on customers, based on data like their gender and shopping habits.
In an August letter sent to McMullen about the same plans, Sens. Elizabeth Warren (D-MA) and Bob Casey (D-PA) said they were concerned about the chain building “personalized profiles of each customer, and then use those profiles ‘to determine how much price hiking each of us can tolerate,’ quickly updating and displaying the customer’s maximum willingness to pay on the digital price tag.”
The use of facial recognition tools in Kroger stores also raises concerns about how Kroger intends to “adequately” safeguard customer data, the Warren and Casey letter said.
“To be clear, Kroger does not and has never engaged in ‘surge pricing,’” the statement said. “Any test of electronic shelf tags is designed to lower prices for more customers where it matters most.”
Isn't that the same thing? It doesn't matter if you raise prices on demand or lower them, the outcome is the same - different pricing at different times.
We need a law in the US banning the use of computer assistance for identifying humans. Hands down. It's not accurate, and it only emboldens people controlling resources.
If companies can't protect the information they collect now, (a large portion of it gathered without consent), how are they going to protect even more information; and where can I opt out?....smh
Kroger also owns: Ralphs, Dillons, Smith’s, King Soopers, Fred Myer, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick‘n Save, Metro Market and Mariano’s.
A Kroger spokesperson said in a statement that the company’s business model is built on a “foundation of lowering prices to attract more customers.”
“To be clear, Kroger does not and has never engaged in ‘surge pricing,’” the statement said. “Any test of electronic shelf tags is designed to lower prices for more customers where it matters most.”
I know these PR people get paid a lot to tell bald-faced lies, but I just don't understand how they live with themselves.
I've been pretty lazy about changing stores since they had the easiest pick up i had found in my area, but i guess this is the ass kick i need to make sure i never go back.
Sucks they own almost all the groceries in my area. But i can trust that it's not a monopoly, right?
Groceries prices deeeeefinately aren't inflated. Nope. All good here.
We all need to wear little bowties that spritz semi clear paint into the cameras as we browse price tags.
Or can someone start a tick tok trend where the kids go to stores and eat these little devices off the shelves as a real "just prank bro"?
Also, remember that corporate rats do these things to give each other cover. Kroger has to be the face of bad guy this time, but don't you think for a second that Safeway and even the new "leadership" at Costco aren't prepping the same right now.
Stores already possess the technology to track anyone's shopping experience through loyalty cards. The "discounts" you get are really just a tax on everyone that doesn't participate, and the benefits to the company for having your data are worth potentially losing business from un-tracked customers. That's how valuable your data is.
So why aren't we seeing per-customer targeting? This is not to suggest that businesses are benign here, but rather, just cautious about outright per-customer discounts and other price manipulation. Custom coupons are kinda/sorta a part of this. IMO, the door is still wide-open to find ways palatable to the customer (and courts) while dialing everyone in.
In that context, all cameras do is make the system practically impossible to dodge. Considering how much stores value that kind of information, it makes sense they'd invest to capture 100% of their retail activity.
Just don't shop at kroger. Problem solved. In some cases this may be the only available store but in those cases the prices are usually higher anyway. No matter the company operating the store