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Kroger accused of surge pricing, planning to incorporate it with facial recognition software
Detroit Congresswoman Rashida Tlaib wrote a letter to the head of Kroger accusing the grocery chain of using facial recognition and behavioral tracking technology as part of a digital price tag program that she says could result in price gouging and discrimination.
FOX 2 - There are concerns for one of the biggest supermarket chains in Michigan - as Kroger is under fire for their use of new facial recognition technology.
Some local lawmakers believe it can be used to drive up prices. Shopper Jalen Davis is like many concerned about a new way the chain are purportedly planning to set prices by using surge pricing with tools like facial recognition technology.
"Honestly man I’m worried. I’m scared," Davis said. "Groceries is not a stock market, even though prices do go up and down. it’s not a stock market. it should just be a set price and that’s it."
Detroit Congresswoman Rashida Tlaib wrote a letter to the head of Kroger accusing the grocery chain of using facial recognition and behavioral tracking technology.
It is all part of a digital price tag program that Tlaib says could result in price gouging and discrimination.
Surge pricing is where the cost is based on supply and demand or time-based pricing.
The Democrat congresswoman also says that Kroger is working with Microsoft on the facial recognition part. It wants to place cameras at digital displays to capture gender and age information of customers - all to create targeted advertisements.
"It’s like everyone is supposed to be treated the same," Davis said. "It’s supposed to be equality. it’s supposed to be the same prices for everybody."
FOX 2 asked Kroger’s corporate office about the fact that some in Congress are asking questions. It denied the surge pricing accusation.
A statement from Kroger said:
"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."
Shoppers that FOX 2 talked with, still have their own questions.
"I’m curious what is the rationale for coming up with such an idea. where has it been applied?" said one man.
"I understand where they are coming from," said shopper Layla Robertson. "But I think there needs to be more thought into how they are using facial recognition to get pricing on stuff like that. "