Walmart CEO says that the retail giant and its AI shopping assistant aren’t using personal information to set prices amid rollout of digital labels

Walmart CEO John Furner has assured customers that the retail giant is not using personal information to set prices as it rolls out digital price labels in its stores. Furner made the pledge on the company's website, stating that Walmart won't charge customers more based on their income, shopping history, or willingness to pay. The CEO emphasized that prices will remain consistent whether customers shop for groceries or electronics, regardless of the time of day or any other factors.

Walmart's decision to eliminate paper shelf tags and replace them with digital price labels stems from concerns from some shoppers, consumer advocates, and lawmakers. These digital labels allow stores to change prices instantly from a central computer, eliminating the need for workers to swap out paper labels manually.

Furner also reassured that Walmart's artificial intelligence shopping assistant, Sparky, is subject to the same promise and won't be used to raise a customer's price or hide lower-priced options that meet their needs. Such practices would be in violation of Walmart's "every day low prices" business model.

Currently, 2,300 Walmart U.S. locations already utilize digital shelves, with the company aiming for chain-wide implementation within the next year. Walmart executives have repeatedly stated that they use electronic shelf price tags to ensure consistent pricing and to save time and labor costs by replacing paper tags.

Recently, the Federal Trade Commission (FTC) warned companies that personalizing pricing could violate consumer protection laws. The FTC, however, does not have the legal authority to ban personalized pricing in all circumstances. Instead, the agency issued a bulletin warning companies to disclose to customers how their personal information is being used to set prices.