Walmart CEO says chain doesn’t use personal info to set prices
As Walmart rolls out out digital shelf labels chainwide, the retailer is making it clear it does not use customers’ personal information to help set prices.
In a statement on the company’s website, Walmart Inc. president and CEO John Furner stated that using someone’s income, shopping history or “moment of need” to charge prices more would violate the “every day low prices” business model the company has built its business on.
“We don't set different prices based on who you are or the time of day, and we won't,” he stated. “Your income, shopping history, urgency or what we think you could pay won't change the price. Whether you’re buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it's never a reason to charge you more.”
In May, Walmart said it was expanding its deployment of digital shelf labels in the U.S. The technology is expected to be implemented across all Walmart U.S. stores within the next year.
In his post, Furner also said that Walmart’s tech shopping tools, including its artificial intelligence shopping assistant Sparky, are being held to the same promise as digital shelf pricing.
“We won't use the information you share with us on Sparky or otherwise to raise your price or hide lower-priced options that meet your needs,” he stated. “We’ll continue to use your information responsibly and respect your choices. You decide whether to share additional details for more personalized help. We’ll continue to be clear about how we use that information, protect it and honor the choices you make. When you do share, we will focus that data on ways that better serve you.”
The statement from Walmart comes amid increasing scrutiny about the use of personalized, or surveillance, pricing, with many states and cities looking to ban the practice. In July, the governor of New Jersey signed a bill that prohibits grocery stores and third-party grocery delivery platforms from using personal data to set individualized prices on groceries and other necessities.
The bill also places a one-year pause on the use of new electronic shelf labels while the state studies the impact of the technology. (Stores, however, can keep using, repairing or replacing existing electronic shelf labels that are already in place.)
In a corporate post in May, Walmart said that the impact of digital shelf labels goes beyond efficiency.
"They help ensure errors do not occur, cut down on paper waste and remove friction from everyday tasks while keeping pricing transparent and consistent," the company said.
