Kroger Grocery store electronic shelf labels & facial recognition

Kroger has introduced Electronic Shelf Labels (ESLs) and facial recognition cameras in their stores. The company claims this technology is designed to improve customer experience and lower prices. However, concerns have been raised about price manipulation, privacy violations, and potential discrimination.

This page summarizes what Kroger claims about this technology, based on official statements and reports.

1. Electronic Shelf Labels (ESLs)

What it is

Electronic Shelf Labels (ESLs) are digital price tags that allow for instant price changes remotely. They are controlled via a cloud-based system, removing the need for employees to manually update prices.

What Kroger says they are using it for

• Lowering prices: ESLs allow for quick adjustments to make shopping more affordable.
• Preventing waste: Enables automatic markdowns for expiring products.
• Competitive pricing: Responding to supplier cost changes and competitor pricing.
• Customer benefits: Showing personalized coupons and promotions based on purchase history.

Concerns

• Surge Pricing: ESLs enable real-time price increases during peak demand (e.g., higher prices on turkeys before Thanksgiving).
• Confusing price changes: A product may have different prices throughout the day, making it harder for customers to compare & plan.
• Hidden price discrimination: ESLs could be used to charge different customers different prices, depending on their shopping habits.

2. Facial Recognition & Customer Tracking

What it is

Cameras inside digital shelf displays (Kroger EDGE system) use AI to analyze age, gender, & emotional response to advertisements.

What Kroger says they are using it for

• Personalized advertising: Showing promotions based on age and gender.
• Security: Detecting repeat shoplifters to prevent theft.
• Improved shopping experience: Analyzing customer engagement to offer better product placement.

Concerns

• Privacy violations: Customers may be tracked without explicit consent.
• Discriminatory pricing: AI could be used to adjust prices based on perceived wealth or shopping behavior.
• Consumer profiling: Creates detailed customer profiles that could be sold to third-party advertisers.
• Kroger gives preferential pricing to certain age groups. Those under 18 may not use the Kroger web site, or use an account and therefore can't get digital deals, and it is harder for them to get information about sales. Age detection in store could be used to further these inequalities.

3. Kroger's Official Response

• Denies "surge pricing": Kroger states ESLs are meant to reduce costs, not raise them.
• Claims facial recognition is only used for advertising, not tracking individuals.
• Insists the goal is to "help customers save money."

Skeptical Questions

• If ESLs can change prices dynamically, what prevents Kroger from raising prices at peak hours? It is common to claim that something reduces prices by first raising the baseline price, and then reducing it from that higher price. (So, instead of raising prices during peak hours, it lowers prices during off peak hours. Identical effect, but they can claim to be reducing costs.)
• If facial recognition is "just for ads," why not allow customers to opt out?
• Is this about helping customers or a corporate strategy to maximize profit?

Primary privacy concern:

• Kroger has introduced technology that allows customers to be tracked & profiled during their shopping experience while prices are changed on the fly.