Lawmakers Worry Electronic Shelf Labels Will Facilitate Dynamic Pricing
Electronic shelf labels are reportedly raising concerns among some lawmakers.
The lawmakers fear that this technology would make it easier for grocery chains to use dynamic pricing, a strategy in which they could raise prices during times of high demand, CNBC reported Friday (Oct. 3).
Electronic shelf tags, which are digital screens that replace paper price tags on retailers’ shelves, are becoming more common, per the report.
The technology has been deployed by Kroger, Amazon Fresh, Whole Foods, and some retailers in other countries, according to the report.
In addition, Walmart has said that it plans to roll out the technology in 2026 in order to reduce the time it takes to change prices from two days to minutes, per the report.
Sen. Elizabeth Warren, D-Mass., and then-Sen. Bob Casey, D-Pa., expressed concerns about the technology and its potential to facilitate surge pricing in a September 2024 letter to Kroger’s then-chairman and CEO Rodney McMullen, according to the report.
Kroger replied, per the report, that it had never engaged in surge pricing and that it uses electronic shelf labels to better manage inventory and to lower prices on goods that are perishable.
It was reported in July that grocery stores in Norway that use electronic shelf labels adjust prices multiple times per day to keep up with competitors.
The Wall Street Journal report said it is only a matter of time before this trend makes its way to the United States.
The report also said the arrival of the technology in grocery stores like Kroger raised worries among lawmakers that companies could use it to raise prices during holidays or weather emergencies.
A Kroger spokesperson told the WSJ that the company plans to use electronic shelf labels not for dynamic pricing, but to reduce paper waste and save time for workers.
When Walmart announced in June 2024 that it had begun rolling out digital shelf labels, it said that in addition to saving time, the technology streamlines stock replenishment, order picking and fulfillment.
The PYMNTS Intelligence and ACI Worldwide collaboration “Big Retail’s Innovation Mandate: Convenience and Personalization” found that 32% of grocers think consumers would be very or extremely likely to switch merchants if not given access to digital price tags or smart shelf tags.
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