Walmart says it will not use personal data for personalised pricing

In short: Walmart says it will not change prices based on a shopper’s identity, even as AI tools make that kind of pricing easier.

What happened

Walmart chief executive John Furner published an open letter saying the company will not use personal data to set different prices for different customers. He said Walmart does not set different prices based on who you are or the time of day, and it will not start.

Furner also said Walmart will not use its in-app AI shopping assistant or its electronic shelf labels to charge different people different prices. Electronic shelf labels are digital price tags on shelves that stores can update quickly, like a screen replacing paper labels.

The letter came as regulators and politicians focus more on “personalised pricing,” which is when a store uses what it knows about you to decide what you pay. Walmart has received patents describing systems that could recommend prices using information such as past purchases, payment method, and customer identification.

Walmart also repeated claims from label vendors that the electronic shelf labels do not include cameras, microphones, or facial recognition. Facial recognition is technology that tries to identify a person by their face, like a phone that unlocks when it sees you.

Why it matters

Many shoppers worry that higher prices could quietly be aimed at people who seem more likely to pay, especially during a period of high inflation. Walmart’s statement is a clear promise that, at least at Walmart, the shelf price should be the same for everyone, like a menu price at a diner that does not change depending on who sits down.

Source: Financial Times