1 hr ago
Walmart Denies Personal Data Pricing as Digital Labels Expand
Walmart is putting electronic price tags on more store shelves.
These tags let the company change prices using a central computer.
Walmart says it will not use information about shoppers to charge different people different prices.
It also says prices will not change because of the time of day or how badly someone wants an item.
Walmart says its shopping assistant, Sparky, will follow the same rule.
The company says prices may still rise or fall when its own costs change.
Some shoppers, advocates and lawmakers are worried that digital tags could make personalized pricing easier.
The Federal Trade Commission has warned companies to explain how personal information is used when setting prices.
Walmart CEO John Furner says the retailer does not use personal information to set individual prices.
The company says digital shelf labels are already used in 2,300 U.S. Walmart locations.
Walmart expects digital pricing technology to be deployed across its chain within the next year.
The labels allow prices to be changed centrally and help match shelf prices with checkout totals.
Consumer advocates and lawmakers have raised concerns as the Federal Trade Commission warns about personalized pricing practices.
- Who
- Walmart, led on this issue by CEO John Furner, and the Federal Trade Commission are central to the report; shoppers, consumer advocates and lawmakers have raised concerns.
- What
- Walmart is expanding digital shelf labels while promising not to use personal information to set individualized prices.
- Where
- At Walmart stores in the United States.
- When
- Furner made the pledge in a statement posted Friday; Walmart expects chain-wide deployment within the next year.
- Why
- Walmart says the technology improves pricing consistency, saves worker time and reduces labor costs, while the pledge addresses concerns about personalized pricing.
Walmart's position
Critics' and regulators' concerns
Use of personal information
Walmart's position
Walmart says it does not set different prices based on a customer's identity, income, shopping history or willingness to pay, and says it will not do so in the future.
Critics' and regulators' concerns
Some shoppers, consumer advocates and lawmakers are skeptical of digital pricing technology because it could raise concerns about personalized pricing.
Purpose of digital labels
Walmart's position
Walmart says electronic labels change prices consistently, help ensure shelf prices match checkout prices, save workers time and reduce labor costs.
Critics' and regulators' concerns
The Federal Trade Commission has warned companies that personalized pricing practices may violate consumer protection laws and that customers must be told how their information is used to set prices.
Key facts
- Company
- Walmart Inc.
- CEO
- John Furner
- Current deployment
- Digital shelves are used in 2,300 Walmart U.S. locations.
- Expected expansion
- Walmart expects the technology to be chain-wide within the next year.
- Pricing pledge
- Walmart says it does not use income, shopping history or willingness to pay to set prices.
- Shopping assistant
- Walmart says its artificial intelligence assistant, Sparky, will not raise a customer's price or hide suitable lower-priced options.
- Regulatory warning
- The Federal Trade Commission warned that personalized pricing may violate consumer protection laws and said companies must disclose how personal information is used to set prices.
Quotes
John Furner
CEO of Walmart Inc.
“We don’t set different prices based on who you are or the time of day, and we won’t. Whether you’re buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it’s never a reason to charge you more.”
livemint.com
Sources
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