Kroger Denies Using Facial Recognition for Dynamic Pricing Amid Congressional Scrutiny

Kroger, one of America’s largest supermarket chains, has issued denials regarding allegations of facial recognition technology deployment in its stores, following reports suggesting its use in connection with dynamic pricing systems. This controversy follows Kroger’s earlier implementation of its EDGE (Enhanced Display for Grocery Environment) digital shelf technology in 2019.

The allegations emerged from media reports claiming Kroger was using facial recognition technology to enable dynamic pricing – the practice of adjusting prices based on customer demographics and shopping patterns. These reports suggested the technology could potentially enable price variations based on individual customer profiles, similar to controversial surge pricing models seen in ride-sharing services.

A Kroger spokesperson has explicitly stated: “Kroger does not use facial recognition technology in connection with electronic shelf labels or pricing.” Microsoft, which had previously worked with Kroger on retail technology initiatives, has confirmed that Kroger is not using its facial recognition technology. Microsoft clarified that the digital price tags currently in use differ from those tested in a 2019 pilot program, and confirmed no surge pricing model is currently implemented.

The matter has drawn attention from federal legislators amid growing concerns about biometric privacy in retail environments. Senators Elizabeth Warren and Robert Casey, along with Representative Rashida Tlaib, have expressed concerns about potential discriminatory pricing practices. In October, Representative Tlaib addressed these concerns in a letter to Kroger’s CEO, while Senators Warren and Casey highlighted potential impacts on economic inequality.

Kroger continues to invest in retail technology, including a partnership with AI company IntelligenceNode focused on pricing and personalization strategies. This investment has generated additional discussion regarding the company’s technological capabilities and intentions, particularly as retailers increasingly explore biometric solutions for retail transactions and customer identification.

Sources: Spectrum News 1, Economic Liberties, HypeFresh

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January 29, 2025 – by the ID Tech Editorial Team

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