Kroger-Giant Eagle Deal Could Expand Customer Surveillance

Kroger’s proposed $1.65 billion acquisition of Giant Eagle could consolidate grocery stores and expand customer surveillance, according to a report from the American Economic Liberties Project (AELP).

The deal would add Giant Eagle’s more than 200 stores to Kroger’s 2,700. AELP says the larger footprint could let Kroger collect customer data across a wider area and use inferences about people’s backgrounds and shopping behavior to personalize prices. The group also says the data could support Kroger’s retail media business, which packages consumer insights for other brands.

AELP also warns the merger could expand or combine in-store surveillance technologies, including Flock cameras and Cooler Screens. Cooler Screens previously promoted its ability to scan shoppers’ faces, then backed away from that messaging after public backlash.

Kroger has shared data from its Flock cameras with police in Columbus, Ohio, The Columbus Dispatch reported in August. Kroger has denied using facial recognition to set customer prices, while its privacy policy says it uses the technology at some stores for security. Kroger and Giant Eagle did not immediately respond to The Verge’s requests for comment.

AELP urges the Federal Trade Commission and Ohio attorney general to block the deal, citing potential reductions in local choices and Kroger’s buying incentives. Experts have predicted regulators may not do so, given the deal’s smaller size compared with Kroger’s blocked Albertsons merger and the Trump administration’s more open approach to settlements.