Current:Home > ScamsRep. Rashida Tlaib accuses Kroger of using facial recognition for future surge pricing -WealthRoots Academy
Rep. Rashida Tlaib accuses Kroger of using facial recognition for future surge pricing
View
Date:2025-04-13 00:15:47
Congresswoman Rashida Tlaib is accusing Kroger grocery stores of using technology that could lead to surge and discriminatory pricing.
The Michigan Democrat wrote in a letter posted to social media on Wednesday that the Cincinnati, Ohio-based grocery chain could use electronic shelving labels to gouge consumers during emergencies.
"ESLs or digital price tags may result in Kroger deploying dynamic pricing for goods, increasing the price of essential goods on shelves based on real time conditions and inventory and creating both confusion and hardship for my residents," the letter read. "My concern is that these tools will be abused in the pursuit of profit, surging prices on essential goods in areas with fewer and fewer grocery stores."
Tlaib also wrote that the use of facial recognition software in stores could allow for Kroger to build profiles on customers and charge them based on the data gathered.
"The use of facial recognition tools has the potential to invade a customer's privacy and employ biased price discrimination," the letter read.
Kroger denied the allegations in a statement to USA TODAY, saying that the technology is intended to lower consumer costs.
"To be clear, Kroger does not and has never engaged in 'surge pricing,'" the company said. "Any test of electronic shelf tags is designed to lower prices for more customers where it matters most. To suggest otherwise is not true."
Tlaib's office did not respond to a request for further comment. The letter requests a response from Kroger by Nov. 1.
Tlaib's letter echoes Senator's concerns
Tlaib's letter echoed concerns from Democratic Sens. Elizabeth Warren and Bob Casey, who wrote a letter to Kroger in August saying that "widespread adoption of digital price tags appears poised to enable large grocery stores to squeeze consumers to increase profits."
"Analysts have indicated that the widespread use of dynamic pricing will result in groceries and other consumer goods being 'priced like airline tickets,'" they wrote.
Kroger introduced digital price tags, called Kroger Edge, to stores in 2018.
Bilal Baydoun, director of policy and research for Groundwork Collaborative, wrote in testimony to the Senate Banking Committee in March that the technology would be used to "determine how much price hiking each of us can tolerate."
Tlaib's letter comes after merger drama
Kroger is currently in the midst of an attempted merger with fellow grocery conglomerate Albertson's. Arguments over an injunction sought by the Federal Trade Commission on the proposed $25 billion transaction closed in September.
Lawyers for the commission argued that the deal would reduce competition, raise consumer prices and eliminate jobs.
"Consumers depend on competition,” FTC attorney Susan Musser told the court. "Common sense says these (non-supermarket options) aren’t a good substitute for supermarkets.”
The court has not yet issued a ruling.
Executives for the Kroger and Albertsons testified in Denver district court on Monday that the deal was necessary to compete with big box stores such as Walmart and Costco, according to the Denver Post. Colorado is one of the states suing to stop the merger.
“We are maniacally focused on Walmart and their pricing. For 20 years we have been focused on getting our prices closer to Walmart’s,” Stuart Aitkin, chief merchandise and marketing officer for Kroger, testified.
The merger was announced in October 2022 but the Federal Trade Commission sued to stop it in February. The merger represents approximately 20% of the U.S. grocery market, according to the U.S. Department of Agriculture, and would affect one out of six grocery laborers if approved, according to the Bureau of Labor Statistics.
Contributing: Alexander Coolidge, Cincinnati Enquirer
veryGood! (37866)
Related
- A South Texas lawmaker’s 15
- KTLA news anchor Sam Rubin's cause of death revealed
- A look at heat records that have been broken around the world
- Taylor Swift sings two break-up anthems in Zürich, and see why she wishes fans a happy July 9
- Kylie Jenner Shows Off Sweet Notes From Nieces Dream Kardashian & Chicago West
- Judge cites ‘hyper-religious’ belief in ruling man incompetent for trial in Minnesota killings
- NHTSA opens an investigation into 94k recalled Jeep Wrangler vehicles: What to know
- 'Longlegs' will haunt your nightmares and 'hijack your subconscious,' critics say
- New data highlights 'achievement gap' for students in the US
- Lena Dunham Reflects on Having Her Body Dissected During Girls Era
Ranking
- Skins Game to make return to Thanksgiving week with a modern look
- Tennessee sheriff pleads not guilty to using prison labor for personal profit
- Dutch name convicted rapist to Olympic beach volleyball team; IOC says it had no role
- Yankees GM Brian Cashman joins team on road amid recent struggles
- Buckingham Palace staff under investigation for 'bar brawl'
- Watch this wife tap out her Air Force husband with a heartfelt embrace
- Police investigate shooting of 3 people in commuter rail parking lot in Massachusetts
- Who starts and who stars for the Olympic men's basketball team?
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
Arizona election worker accused of stealing a security fob also charged with other crimes
JoJo Siwa Reveals How Her Grandma Played a Part in Her Drinking Alcohol on Stage
Cheetos fingers and red wine spills are ruining couches. How to cushion your investment.
Jamie Foxx gets stitches after a glass is thrown at him during dinner in Beverly Hills
Congressional Democrats meet amid simmering concerns over Biden reelection
Taylor Swift sings two break-up anthems in Zürich, and see why she wishes fans a happy July 9
What the White House and the president's doctor's reports say about Biden's health