Walmart says new technology will not create different prices for shoppers.
Walmart CEO John Furner has said the company will not use artificial intelligence (AI) or new digital price tags to charge different customers different prices for the same product. His comments come as shoppers and consumer groups have raised questions about how new technology could change the way prices are set in stores and online, with personalized pricing claims specifically taking the spotlight. In a message shared with Walmart employees, customers and members, Furner said the company follows its long-standing Every Day Low Prices policy. He said Walmart does not set prices based on a shopper’s income, shopping history, urgency, identity or the time of day. According to Furner, that policy will continue even as the retailer adds more technology to its stores and online services.
The statement addresses concerns surrounding Walmart’s use of digital shelf labels , which to many, seem like an underhanded tactic used by retailers to adjust item cost, creating sweeping personalized pricing claims across the nation. Unlike traditional paper tags, digital labels can be changed electronically. Walmart has said the labels are being used to keep shelf prices accurate and reduce the amount of time employees spend replacing paper tags. Furner said the electronic labels are intended to help stores keep displayed prices in line with the prices that customers see at checkout. He also said the technology can free employees from spending large amounts of time changing paper signs, allowing them to spend more time helping shoppers.
The company has also been adding artificial intelligence tools to its online shopping services. One of those tools is Sparky, an AI shopping assistant designed to help customers find products and make purchasing decisions. Because such tools can have access to information about shoppers and their shopping activity, questions have been raised about whether that information could eventually be used to charge certain people more. Furner said Walmart will not use information provided through Sparky to increase a customer’s price or keep lower-priced choices out of view. He said the shopping assistant is intended to provide more helpful service rather than create different prices for different individuals.
The issue has attracted attention beyond Walmart because retailers across the industry are testing digital pricing systems and AI-based shopping tools. Digital shelf labels can make it easier for stores to update prices, while computer systems can process large amounts of customer information. Those abilities have led to questions about how far retailers could go with pricing based on customer data. Walmart’s position, according to Furner’s statement, is that the price of an item should not depend on who is looking at it. The company says a customer’s personal information, past purchases or financial situation will not be used to decide that person’s price. Furner also said customers will continue to have choices about the information they provide when using Walmart’s shopping tools. The company says information shared by customers will be handled responsibly and used to provide more useful services rather than to raise prices.
Walmart has not said that prices will never change. Furner explained that prices can go down when the company is able to pass savings to shoppers. Prices can also rise when Walmart faces higher costs for buying or transporting products. Those changes, he said, are different from setting a price based on an individual customer’s ability or willingness to pay. The company also said people will remain involved in overseeing its pricing systems. Walmart plans to monitor and test its technology as the new tools become part of everyday shopping.
Sources:
Walmart won’t charge a ‘personalized price’, CEO says
Walmart CEO says company will not use AI, customer data to set personalized prices
