Rep. Rashida Tlaib voices concern that Kroger's facial recognition could open door for price gouging
(CBS DETROIT) — Rep. Rashida Tlaib is voicing concern over Kroger's plans to use new facial recognition technology, arguing it could open the door for surge pricing.
In a letter to Kroger, posted on X this week, Tlaib claimed the store would be using electronic shelving labels in their stores.
"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," Tlaib said in the letter.
The congresswoman went on to speculate on Kroger placing cameras around the store, using facial recognition to determine the age and gender of customers, and presenting targeted ads.
The technology would also allow Kroger to build personalized profiles of each customer to determine the highest price of goods customers are willing to pay, according to Tlaib.
In the letter, Tlaib asked Kroger a series of questions regarding targeted ads, price gouging, privacy safeguards and if the technology will be used at all stores.
In response, a spokesperson with Kroger sent the following statement:
"Kroger's business model is built on a foundation of lowering prices to attract more customers. Everything we do is designed to support this strategy, and customers are shopping more with Kroger now than ever because we are fighting inflation and providing great value. To be clear, Kroger does not and has never engaged in 'surge pricing.' Any test of electronic shelf tags is designed to lower prices for more customers where it matters most. To suggest otherwise is not true."
Kroger lists 120 stores across 82 cities in Michigan.
