Many times there are issues that bring folks that have beliefs on either side of politics together. No matter what side of the political aisle you woke up on today, the legislation that I address in this article is something that concerns all of us. Any of us that purchase items, especially groceries, is being targeted by technology, and we must all support efforts to create legislation that protects us as shoppers and as members.
Surveillance pricing is a business practice where companies use your personal data—such as location, browsing history, and demographics—to set individualized, targeted prices for goods or services. This strategy uses AI to identify the maximum amount a specific consumer is willing (or able) to pay, and adjusts the price of items in your carts based on its own research and algorithm.
So, companies you shop at are tracking all of your movements like what stores you visit, websites and apps you visit, what items you bought before, where you buy them or even when you usually buy them. They even know how long you hover over an item before or after you put it into your cart. There is so much data that is collected from our movements, and companies are taking advantage of all of our individual tendencies.
Companies that engage in surveillance pricing have the ability to determine, for example, whether a specific shopper is able to shop for a large household at their leisure, or if the shopper is a single parent in need of basic items, and willing to pay whatever they need to in order to get them as soon as possible. In many cases, under this scenario, the company takes advantage of the single parent because their past shopping trend shows that they really have no choice but to pay whatever they are charged, and the company charges them more for the same items. Retailers analyze consumer behavior, such as tracking when a user searches for products late at night (suggesting desperation/need) or even checking if they are using an expensive device to shop on. Different shoppers see different prices for the exact same items in the same location. No matter where you live or what your financial situation is, there’s an algorithm that’s set to extract the most out of you.
There are other common examples of Surveillance Pricing. Location-Based pricing is when a store charges higher prices when a customer is already in their parking lot, assuming they are committed to purchasing. E-commerce Personalization is showing higher prices to customers in wealthier zip codes or those who frequently buy a specific brand. Digital Tracking is a company adjusting prices for items (e.g., flight tickets) based on a user’s previous searches, indicating high interest and readiness to buy. Targeted Promotions is the process of withholding discount codes from loyal customers who are expected to buy anyway, while targeting those discounts towards new users.
Here’s a challenge for you. Get together with a friend and, from different sides of town, using a different brand and type of device, put together identical orders from a company like Instacart, or even check for the same airline flight tickets and see what you come up with. You may be shocked. Different folks’ algorithms create different results, and it’s time we help bring this to light and fight to have companies stop exploiting their customers.
This type of predatory pricing affects us all, and we must band together to support protective legislation similar to a recent Maryland law, and one we are trying to pass in New York and other states across the country. In Maryland, the Protection from Predatory Pricing Act was signed into law by their Governor Wes Moore this month. It prohibits retailers from using personal data to set individualized prices and mandates that grocery prices remain fixed for at least one business day. That might not sound like a long time, but as quick as companies are changing prices on us, this is a major setback for them. The legislation specifically restricts the use of electronic shelf labels to implement rapid algorithmic price changes, which segues into the next part of my article.
If you grew up in New York, it’s likely that ESL held a certain meaning. And growing up in New York City, ESL has always had a particular ring to me for as long as I can remember. However, more recently the acronym has taken on another, serious meaning which we also need to make a household term.
Some supermarket operators have already installed electronic shelf labels, or ESLs for short, in their stores. At first blush, these little individual pieces of technology may seem pretty cool, even to our members. They look like a small digital clock every few inches on the shelves of the supermarket, and they are intended to replace the paper shelf price tags and display signs that we have known for decades. Instead of physically taking the paper shelf labels off the shelf and replacing it with a new one when it comes time to change the price of that item, ESLs can all be changed at the push of a button in a centralized office. Cool tech right? Yeah, but no. Wait until all price changes are done at one push of a button from one person off at some corporate office somewhere. Who needs you then? Its design and existence is going to eliminate many of our jobs, while not yielding any additional savings for the consumers.
These little things not only directly threaten the jobs of our membership, they go hand in hand with Surveillance Pricing, where prices are changed on you in an instant. Pick an item off the shelf…and because AI knows it’s you…the price could be changed on you before you get to the register.
As you can see, retailers are tracking your shopping habits. They are tracking your demographics. They are tracking where you live as well as where and how you shop. If you keep coming back for that same item, they are probably going to jack that price up on you soon. They are using who you are and your pattern of actions against you.
Your Union is working to fight these practices by supporting legislation that will ban them. But your elected officials, whether Republican or Democrat, need to hear from the folks that live and work in their communities. We have recently lobbied in Albany and Washington D.C., explaining the dangers to legislators, having had discussions with many of them about the negative aspects of Surveillance Pricing and ESLs, among other concerning items. And yes, Local 1500’s intent is to have laws passed that will ban or control the use of ESLs at Employers that have already installed them, whomever they are.
We will be attending other lobby day events and would be happy to have a strong contingency of our membership join us in Albany. This is not a political issue; this is a people issue. We will be reaching out to you in the near future, but until then remember to:
Say NO to Surveillance Pricing!
Say NO to ESLs!
Check out more information on our website at www.ufcw1500.org and at: