Walmart will not raise prices based on customers’ purchase histories — The Verge

Walmart’s U.S. chain said it will not change product prices based on customers’ personal data or the time of day. Company CEO John Furner explained in a letter to customers that introducing digital shelf labels is intended to save store employees’ time, not to implement personalized pricing.

A promise not to use customer data

As The Verge reports, Furner assured that product prices will not be affected by a customer’s income, purchase history, urgency of a purchase, or an assessment of how much they are willing to pay. According to him, a price will not increase, in particular, because of hot weather or an urgent need to buy a certain product.

The Walmart executive also noted that the company will not use information from customers’ conversations with the Sparky AI assistant to change prices.

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Digital shelf labels and regulation

Walmart previously announced plans to install digital shelf labels in all U.S. stores by the end of the year. This raised concerns about dynamic pricing, under which retailers can adjust prices depending on demand for a product, competitors’ offers, and consumer preferences.

The U.S. Federal Trade Commission is working on a policy to counter personalized pricing. At the same time, New York state has already required sellers to disclose the use of algorithmic pricing, while New Jersey, Connecticut, and Maryland have taken steps to prohibit changing prices based on customers’ personal data.