Is Kroger Using AI Facial Recognition for Surge Pricing?

Kroger could be finding a new way to charge customers money.

According to Gizmodo, congresswoman Rashida Tlaib sent the supermarket chain a letter over the company’s repeated plan to introduce digital price tags that could be changed at any time in order to raise or lower prices for shoppers based on the time of day, the weather an various other factors.

While that is only one part of Kroger’s reported plan, the company also reportedly plans to introduce cameras in their stores that would be sued for facial recognition. According to the outlet, Kroger is partnering with Microsoft as part of an AI initiative to institute dynamic pricing at its grocery stores. The cameras are part of this plan and would be used to help with targeted ads.

However, Microsoft has since spoken out on the partnership and the use of facial recognition technology.

“Kroger is not using Microsoft facial recognition technology, and the current digital price tag technology being used is not the technology we piloted in 2019,” a spokesperson said.

However, Tlaib has since shown concern over this reported plan.

“Studies have shown that facial recognition technology is flawed and can lead to discrimination in predominantly Black and brown communities. The racial biases of facial recognition technology are well-documented and should not be extended into our grocery stores,” her letter said, according to Gizmodo.

Kroger owns various other brands, including Ralphs, Fred Meyer, Pick’n Save, Food 4 Less, and Dillions and more.

Tlaib went on to share that the use of AI would be harmful to the customers and cause them to pay more, saying that it would “determine the maximum price of goods customers are willing to pay.”

Kroger has since spoken out on the plan and released a statement to Gizmodo. In it, they said that the company’s business model is “built on a foundation of lowering prices to attract more customers” and that the chain has more customers than ever thanks to its “greta value.”

They went on to say that the process they would use would not raise prices.

“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,” the statement said.

Kroger previously faced scrutiny for its take over of Albertson, which is currently going to courts over anti-trust concerns.