In a letter Friday to Kroger CEO Rodney McMullen, Congresswoman Rashida Tlaib (D-MI) said the plans — which involve using facial recognition tools in digital displays to target advertising to customers and collect information on them — potentially pave the way for biased pricing discrimination.
“Studies have shown that facial recognition technology is flawed and can lead to discrimination in predominantly Black and Brown neighborhoods,” Tlaib wrote in the letter, which was posted on social media Tuesday. “The racial biases of facial recognition technology are well documented and should not be extended into our grocery stores.”
Kroger is the largest grocery store chain in the country with nearly 3,000 stores and $3.1 billion in profits in 2023. Kroger and other retailers already use electronic shelving labels instead of paper labels to rapidly adjust prices based on a variety of factors, including time of purchase, where a grocery store is located and other data.
The plan to use facial recognition technology could allow the retailer to build individual profiles on customers, based on data like their gender and shopping habits.
In an August letter sent to McMullen about the same plans, Sens. Elizabeth Warren (D-MA) and Bob Casey (D-PA) said they were concerned about the chain building “personalized profiles of each customer, and then use those profiles ‘to determine how much price hiking each of us can tolerate,’ quickly updating and displaying the customer’s maximum willingness to pay on the digital price tag.”
The use of facial recognition tools in Kroger stores also raises concerns about how Kroger intends to “adequately” safeguard customer data, the Warren and Casey letter said.
The key phrase to remember here is: Price Discrimination.
Stores already possess the technology to track anyone’s shopping experience through loyalty cards. The “discounts” you get are really just a tax on everyone that doesn’t participate, and the benefits to the company for having your data are worth potentially losing business from un-tracked customers. That’s how valuable your data is.
So why aren’t we seeing per-customer targeting? This is not to suggest that businesses are benign here, but rather, just cautious about outright per-customer discounts and other price manipulation. Custom coupons are kinda/sorta a part of this. IMO, the door is still wide-open to find ways palatable to the customer (and courts) while dialing everyone in.
In that context, all cameras do is make the system practically impossible to dodge. Considering how much stores value that kind of information, it makes sense they’d invest to capture 100% of their retail activity.