Senators Investigate Kroger Over Dynamic Pricing

Kroger, the largest grocery store chain in the U.S., is under investigation by Senators Elizabeth Warren and Bob Casey for potentially using electronic price tags to implement surge pricing, which could unfairly increase prices during peak shopping times. The senators expressed concerns in a letter to Kroger's CEO, Rodney McMullen, that the technology, known as Electronic Shelving Labels (ESLs), might allow the company to adjust prices dynamically based on demand, similar to practices seen in airlines and ride-sharing services. Kroger began testing ESLs in 2018 and has since expanded them to over 500 stores, claiming they enhance efficiency and lower prices for consumers. However, the investigation raises fears that this practice could lead to price gouging, particularly as food prices are at a 30-year high. In response, Kroger emphasized its commitment to keeping prices low and stated that the use of ESLs is aimed at benefiting customers, not exploiting them. The senators have requested detailed information from Kroger regarding its use of the technology and its impact on pricing strategies by August 20.