Is Walmart developing technology to charge customers different prices?
What's the story
Walmart has denied a recent report that claimed the retail giant is developing technology for personalized pricing. The denial came from Dan Bartlett, Walmart's Executive Vice President of Corporate Affairs, who took to X and the company's website to address the allegations. The report by Groundwork Collaborative had suggested that Walmart had patented technology for personalized pricing, using extensive consumer data.
Patent details
Patent applications detail potential data collection
The report highlighted multiple patent applications that detail the data Walmart can collect about its users. These include everything from songs on your playlist to your credit report.
The concept of dynamic pricing, which involves changing prices within a 24-hour period based on factors like weather, is also mentioned in these patents.
This practice has drawn criticism from some policymakers who are concerned about its potential impact on consumers.
Pricing concerns
Surveillance pricing raises ethical concerns
Surveillance pricing, a related concept, uses customer behavior and characteristics to price the same products differently.
The Groundwork report alleged that Walmart plans to charge more based on who a customer is and what they need.
For instance, it could charge new parents more for baby products or adjust prices based on items in one's cart.
This has raised concerns over potential discrimination in pricing strategies.
AI impact
We do not use AI to upcharge our customers: Walmart
The report also touched on Walmart's in-house AI shopping assistant, "Sparky."
It claimed that customers using this tool tend to spend more than those who don't.
However, Bartlett refuted these claims in his statement. He said the report mischaracterizes Walmart's pricing practices and use of technology, adding that "We do not use AI to upcharge our customers."
Report rebuttal
Owens responds to Walmart's denial
In response to Walmart's denial, Groundwork's president and CEO, Lindsay Owens said, "The confusion around Walmart's pricing practices is of its own making."
She criticized the company for its inconsistent messaging about pricing practices.
Owens also released a new analysis of Walmart patents to let Americans decide for themselves.
She raised concerns about Spark's capabilities and safeguards, especially after the Hugging Face incident.