The largest network of grocery stores in the United States Kroger has sparked outrage among lawmakers with its proposal to implement facial recognition technology. Congressmen are concerned that such a system could jeopardize the personal data of shoppers and potentially lead to price discrimination.
Congressional representatives are worried that the technology could be used for targeted advertising and data collection. They also argue that these tools could heighten the risk of price discrimination, particularly in areas with a high percentage of African American and Latin American residents.
Reports have indicated that facial recognition technology may be prone to errors and biases. Furthermore, it has been suggested that Kroger plans to utilize these systems to raise prices in areas where access to alternative stores is limited.
Currently, Kroger and other retailers have adopted electronic price tags to swiftly adjust prices based on factors such as the time of purchase and store location. However, the introduction of facial recognition technology could enable the creation of detailed customer profiles centered around gender and buying habits.
In August, senators raised concerns with Kroger’s management regarding the potential use of personalized profiles to determine the maximum price that a customer would be willing to pay. There are worries that such mechanisms could lead to automatic price adjustments on electronic price tags.
In response, Kroger emphasized that its business model is geared towards reducing prices to attract a wider customer base. The company’s representative stressed that they have never engaged in “dynamic pricing” and that the testing of electronic price tags is intended to offer lucrative deals.
Congress has also requested clarification on how consumers will be safeguarded if they choose to opt out of data tracking and reject targeted pricing strategies. The letter underscores the concern that large retailers, particularly those with a monopoly in certain regions, could exploit essential items by raising prices.
It was initially speculated that Microsoft was involved in Kroger’s facial recognition plans. However, a Microsoft representative has refuted these claims, stating that the company does not provide Kroger with technologies for such purposes.