Kroger faces scrutiny over customer data and “surveillance pricing” concerns

Local shoppers in the Grand Lake region who frequent Kroger might want to keep an eye on how their personal data is being used. A recent report and mounting bipartisan criticism in Congress are shining a light on what critics are calling a "surveillance pricing scam."

According to Taylor Warren, President of the Center for Responsible Food Business, Kroger is utilizing customer loyalty programs to gather sensitive personal data, including shoppers' income and education levels. This data is then reportedly sold to other companies, bringing in over five hundred million dollars last year for the Cincinnati-based grocery chain.

Critics, including U.S. Senators from both sides of the aisle, warn that this gathered information could be used alongside artificial intelligence and new electronic shelf labels. Consumer advocates fear this technology could allow Kroger to change prices instantly based on individual shopper profiles, or even temporary factors like an illness spreading through the community.

While Kroger maintains that it does not engage in surge or personalized pricing, watchdogs point to the company's recent investments in digital price tags and A.I. infrastructure as cause for concern. Advocates are now urging Ohio lawmakers to step in and pass legislation to protect shoppers before it is too late, noting that at least eleven other states have already introduced similar bills to crack down on data-driven pricing.

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