Walmart President and CEO John Furner has publicly stated that the retail giant will not engage in dynamic pricing, surveillance pricing, or personalized pricing. In a recent statement, Furner emphasized the company's stance, declaring, "We price the product, not the person."
This announcement comes amid increasing adoption of electronic shelf tags (ESLs) across the retail industry, including at Walmart and competitors like Kroger. While proponents argue ESLs reduce paper waste, save labor costs, and free up employees for customer service, critics and consumers have raised concerns about the potential for these digital displays to enable dynamic and personalized pricing strategies. Dynamic pricing allows prices to fluctuate in real-time based on market demand, inventory, or competitor actions. Surveillance or personalized pricing involves using individual consumer data and algorithms to set different prices for the same product.
Furner's statement directly addresses these fears, pledging that Walmart will not alter prices based on a customer's income, shopping history, perceived urgency, or ability to pay. He also clarified that external factors like time of day or sudden demand spikes will not be used to charge more for items.
Furthermore, Furner committed to responsible data usage concerning Walmart's shopping tools, such as its AI-powered assistant Sparky. He vowed that information shared with these tools would not be used to manipulate prices. The company also committed to transparency regarding how customer data is utilized and respecting customer choices.
The timing of Walmart's statement coincides with heightened scrutiny from consumer advocacy groups and regulatory bodies. The Federal Trade Commission (FTC) has previously issued warnings regarding personalized pricing practices. While the FTC cannot outright ban such schemes, it has indicated a commitment to aggressive enforcement and proposed requiring businesses to disclose if they engage in deceptive pricing tactics.
Concerns among shoppers have been amplified by the rollout of ESLs. Anecdotal reports have circulated, including unfounded fears of cameras on ESLs for facial recognition. Some shoppers have shared experiences of price discrepancies and the methods used to resolve them, such as documenting the price shown at the time of purchase. Walmart's commitment aims to preemptively address these consumer anxieties and reassure customers about its pricing practices.