Walmart CEO says prices won’t be based on shoppers’ history

Walmart says it will not change product prices based on customers’ personal information or the time of day, CEO John Furner wrote in a letter to customers. The company says its digital shelf labels are intended to save store associates time, not enable dynamic pricing.

“Your income, shopping history, urgency or what we think you could pay won’t change the price,” Furner wrote. He also said that whether someone buys groceries or electronics on a hot afternoon or in a rush for an item would not be a reason to charge more. Walmart will not use conversations with its Sparky AI assistant to change prices, he added.

The reassurance follows Walmart’s plan to roll out digital shelf labels in all US stores by the end of the year. The plan prompted concerns about dynamic pricing, in which retailers change prices based on factors such as demand, competitor prices and customer preferences.

The Federal Trade Commission is working on a policy to curb personalized pricing, while states are adopting their own rules. New York requires retailers to disclose when they use algorithmic pricing. New Jersey, Connecticut and Maryland have moved to ban stores from using customers’ personal data to change prices.