NEW YORK (AP) — Walmart aims to allay customer fears about its new pricing technology by rolling out digital price tags in its stores.
In a declaration posted on the company’s website, Walmart Inc. CEO John Furner said the Bentonville, Arkansas-based retailer does not use personal information such as income, purchase history or a customer’s willingness to pay to set prices, nor would it do so in the future.
“We do not and will not set different prices based on who you are or what time of day it is,” Furner wrote Friday. “Whether you’re shopping for groceries or electronics on a hot afternoon or suddenly in a hurry to purchase an item, that’s never a reason to charge yourself more.”
Walmart’s commitment comes as Concerns are growing from some shoppers, consumer advocates and lawmakers skeptical about the rollout of digital price tags. by the discounter and other stores. Digital price labels are quickly replacing paper labels on U.S. supermarket shelves and allowing stores to change prices instantly from a central computer instead of requiring employees to swap paper labels by hand.
Furner noted that Walmart also holds its artificial intelligence shopping assistant Sparky to the same promise and would not use the robot to jack up a customer’s price or hide cheaper options that meet their needs.
Furner said such practices would violate the company’s “everyday low cost” business model.
He also noted that prices can change: Walmart lowers them when it can pass on the savings, or sometimes raises them because an item costs more to buy or transport, he said.
Walmart said in March that 2,300 Walmart locations in the United States is already using digital shelves and hopes to have this technology rolled out across the chain over the next year.
Walmart executives have repeatedly said they use electronic price tags to help the retailer change prices consistently and match them to what rings up at the checkout. It also saves workers time and labor costs by replacing paper labels.
Last month, the Federal Trade Commission said this puts businesses on notice that the practice of personalizing prices could violate consumer protection laws. The agency said it does not have the legal authority to prohibit personalized pricing in all circumstances, but it issued a new bulletin warning businesses that they must disclose to customers how personal information is used to set a price.
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