Amid rising scrutiny over its pricing strategies, Walmart has refuted claims regarding its use of technology to adjust pricing based on customer data or environmental conditions. This response follows a report from Groundwork Collaborative that brings to light several Walmart patents, suggesting the potential use of dynamic pricing technology.
Walmart Requests Correction on Allegations
Walmart’s Executive Vice President of Corporate Affairs, Dan Bartlett, addressed Lindsay Owens, President and CEO of Groundwork Collaborative, in a letter on Monday. In this communication, Bartlett urged Owens to rectify “mischaracterizations” of Walmart’s pricing practices. He insisted that claims suggesting Walmart intends to use customer information or external factors like weather for price adjustments are inaccurate.
Clarification on Technology Use
Bartlett emphasized that Walmart is committed to not employing digital shelf labels for individualized or dynamic pricing. Despite recent patent activity, the company clarified that these patents describe potential uses of technology rather than current or planned strategies. A spokesperson from Walmart reiterated that the company will not implement or renew a patent related to adjusting prices based on a shopper’s cart contents. This patent, granted in 2023 and expiring in April 2039, illustrates “a possible use of technology” but is not reflective of Walmart’s pricing models.
Groundwork Collaborative’s Concerns
Owens responded to Bartlett’s letter by stating that the confusion stems from Walmart’s own varied messaging to different stakeholders. Groundwork Collaborative’s report highlights the inconsistency between public and internal communications by Walmart regarding the use of technological advancements in pricing.
Regulatory and Industry Perspectives
The dialogue between Walmart and Groundwork Collaborative comes after Walmart CEO John Furner issued a statement to assuage fears that Walmart leverages digital technologies to price discriminate among customers. The statement emphasized that prices are set based on products, not individual customers. However, the report authored by Owens and Elizabeth Pancotti questions Walmart’s investments in such technologies if they are not intended for use.
The interest in dynamic pricing has attracted regulatory scrutiny, with the Federal Trade Commission examining personalized pricing. Additionally, Maryland leads as the first state to legislate against price manipulation through consumer surveillance data.
According to Ari Lightman, a professor at Carnegie Mellon University, the notion of dynamic pricing contradicts Walmart’s traditionally low-price philosophy. “Walmart has long been associated with everyday low pricing, which does not align with dynamic pricing practices,” Lightman remarked.
Reporting based on coverage first published by retaildive.com.