Walmart Denies Plans for Surveillance Pricing Despite Holding Patents for Surveillance Pricing

The distinction between a patent as a mere concept and a blueprint for future implementation has come into focus recently, particularly amid discussions surrounding surveillance pricing. Walmart has found itself at the center of this debate, responding to growing concerns following the promotion of Lindsay Owens' new book, which critiques pricing strategies of large retailers. The company has firmly denied any intentions to utilize its patents for surveillance pricing, a method that involves adjusting prices for individual consumers based on their personal data.

Lindsay Owens, who is the CEO and President of the Groundwork Collaborative, has gained recognition as a leading authority on surveillance pricing. In her book, "Gouged: The End of a Fair Price—and What That Means for Your Wallet," Owens has shared insights through various media outlets, including interviews with Jon Stewart and Gizmodo. Her discussions often highlight how major corporations, including Walmart, hold patents that could facilitate surveillance pricing practices.

Owens previously testified before Congress in August, where she addressed the ways consumers are being taken advantage of in the marketplace. Notably, she served as an expert witness for Republican Senator Josh Hawley, a choice that has sparked interest given the party's typically less consumer-friendly reputation. Her comments regarding Walmart's electronic shelf labels and associated patents have particularly drawn the company's ire.

In a recent interview with Gizmodo, Owens elaborated on one of Walmart's patents concerning electronic shelf labels that are being implemented across the country. She explained that the technology allows for dynamic price adjustments based on what a customer has in their shopping cart, using an example involving tuna and mayonnaise. “Once you have the tuna, they can change the price of mayonnaise,” she stated, emphasizing the potential implications of such technology.

The patents that Walmart has secured support Owens's claims. For instance, a patent submitted by Walmart in 2018, which received approval from the U.S. Patent and Trademark Office in 2023, outlines a system that enables remote control of electronic shelf labels. It details how prices can be altered dynamically, suggesting that if a shopper has certain items in their cart—like tuna—the price of complementary items, such as mayonnaise, could be adjusted accordingly. Additionally, it mentions the possibility of changing prices based on supply and demand factors.

Owens also referenced historical instances where companies have adjusted prices based on environmental factors, such as Coca-Cola's price hikes on ice cream during hot weather, which faced public backlash in the 1990s. Her book contains numerous examples illustrating the broader implications of surveillance pricing.

In response to Owens' assertions, Walmart has accused her of misrepresenting their intentions. Dan Bartlett, Walmart's executive vice president of corporate affairs, issued a statement on social media challenging Owens to “correct the record.” He criticized her portrayal of their digital shelf labels as part of a strategy for “real-time dynamic pricing,” linking it to potential price increases for ice cream on sunny days or soup during winter storms.

“You framed these examples as what the technology could enable, but repeatedly using Walmart to illustrate them implies this is where our business is headed. It is not,” Bartlett asserted. He emphasized that holding a patent does not equate to actual implementation, stating, “A patent describes an invention and potential capabilities. It does not mean that Walmart has deployed a capability, used it with customers, or decided to do so in the future.” He further clarified that the example of tuna and mayonnaise does not mean Walmart would charge more for mayonnaise if a customer has tuna in their cart.

Bartlett also defended Walmart's use of its AI assistant, Sparky, which Owens has highlighted in her recent report titled “The Walmart Watchtower: Patents Speak Louder Than Pledges.” In this report, she quotes Walmart's CEO David Guggina, who noted that customer interactions with Sparky typically lead to a 40% increase in average order value.

Despite Walmart's reassurances, concerns remain regarding how consumer data might be utilized in pricing strategies. As the conversation around surveillance pricing continues, many are left wondering about the transparency of Walmart's practices and the implications for consumer trust.