Walmart is accelerating the installation of digital price tags across its 4,600 U.S. stores, a move slated for completion by the end of the year. The company states the technology will automate the previously time-consuming process of updating paper price tags on shelves. However, the expansion has drawn significant criticism from labor unions and some Democratic politicians, who fear the digital tags could enable price gouging, increase surveillance, and threaten retail jobs.
Union officials, including Ademola Oyefeso, vice president of the United Food and Commercial Workers International Union (UFCW), are actively lobbying for legislation to regulate or ban the technology. They point to the advanced capabilities of newer digital tags, such as Bluetooth receptors that can detect nearby devices, as a cause for concern. These fears are amplified by recent public distrust in pricing technologies, following controversies involving dynamic markups by Instacart and ride-sharing services like Uber and Lyft. The recent backlash against Wendy's CEO's suggestion of dynamic pricing on digital menu boards further underscores consumer sensitivity to fluctuating prices.
At a New York City Council hearing focused on pricing practices, union representatives identified the prohibition of digital shelf tags as a primary legislative goal. They argue the devices could eliminate jobs and allow retailers to charge different prices to consumers without their knowledge. Similar legislative efforts are underway at the federal level, with bills proposed in both the U.S. House and Senate. Seven states have seen proposed bans, with one in the New York State Senate passing that chamber before the legislative session concluded.
Retail, Wholesale, & Department Store Union political director Deborah Wright described electronic shelf tags as a "conduit for dynamic and surveillance pricing," noting the significant investment by large corporations in systems that allow for instantaneous price changes. Brooks Forrest, Walmart’s vice president of associate tools, has countered these claims, explaining to lawmakers that Walmart's practice is to change prices overnight, not multiple times during operating hours. He characterized the proposed legislation as an "overcorrection" based on misinformation.
Concerns have also been raised about the potential for digital tags to be integrated with biometric data. City Council member Carmen De La Rosa voiced worries during the New York City hearing about the collection of data, such as facial recognition, which could be used to set prices based on individual shopping histories. Retail trade groups, however, dismiss these concerns as "hypothetical fears."
Walmart is collaborating with Vusion, a French company that also supplies digital tags to other retailers like Kohl's and Mattress Firm. Vusion, described as the largest manufacturer in the sector, has also engaged in legislative hearings to address what it calls "misinformation." Vusion representatives have highlighted the technology's utility beyond pricing, such as using flashing lights on tags to alert staff to restock items or to help employees locate products for online order fulfillment. Roy Horgan, Vusion's senior executive vice president of strategy, suggested the technology could eventually help customers locate products more easily. P.C. Richard & Son has reportedly used similar digital tags for at least six years, with a store manager noting the reduction in staff time previously required for manual tag changes.