Electronic shelf labels likely to cost jobs and drive up grocery prices, US report warns
AFL-CIO calls for ban on such labels to protect consumers and workers from surveillance pricing and job cuts The universal adoption of electronic shelf labels in grocery stores across the US could cost tens of thousands of jobs and billions of dollars in lost wages while further driving up grocery costs, according to a report released on Tuesday. An analysis by the AFL-CIO Tech Institute of the…
A new report from the AFL-CIO Tech Institute warns that the widespread use of electronic shelf labels (ESLs) in US grocery stores could lead to significant job losses and higher grocery prices. According to the analysis, adopting ESLs could result in lost wages of $1.6 billion to $6.9 billion annually and eliminate between 44,223 and 191,633 jobs. The report, titled "Priced Out, Pushed Out," calls for a ban on ESLs to protect consumers and workers.
Manufacturers argue that ESLs enable dynamic pricing, allowing prices to change based on real-time customer data, which could increase profits and cut labor costs. However, the report indicates that ESLs utilize the same algorithmic pricing software as online retailers, potentially exacerbating price fluctuations and raising concerns about consumer affordability.
Several states have introduced legislation to ban surveillance pricing and ESLs, with Maryland becoming the first state to ban surveillance pricing in April, followed by Connecticut and New Jersey. These bans aim to prevent the misuse of technology that allows grocery stores to adjust prices rapidly and potentially exploit customers.
The AFL-CIO Tech Institute emphasizes that ESLs create infrastructure for swift, algorithm-driven price changes, which could further drive up grocery costs and negatively impact workers. The organization's policy director, Lauren McFerran, notes that the technology enables "how do we extract the absolute most money out of grocery shoppers that is humanly possible" and "how do we squeeze our workers as much as is humanly possible."
Public opinion polls show that 68% of Americans believe surveillance pricing and digital price tags will increase grocery costs, with 65% supporting a ban on these technologies. The United Food and Commercial Workers union reports that workers who typically change prices on shelves are gradually losing their jobs as retailers adopt ESLs, leading to shifts from full-time to part-time, and eventually to no work hours.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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