Walmart says it won't personalize prices despite patents

Walmart is under scrutiny following a recent report from Groundwork Collaborative, which reveals that the retail giant has patented technology aimed at personalizing prices based on customer data. The report, titled "The Walmart Watchtower" and released on October 5, outlines how Walmart collects extensive information about its customers, including their music preferences and credit histories.

Dynamic pricing, a strategy that adjusts prices within a 24-hour period in response to various factors such as weather conditions, is already facing criticism from some policymakers. A related concept, known as surveillance pricing, involves modifying prices for the same products based on individual customer behaviors and characteristics. The Groundwork report suggests that Walmart's patents indicate an intention to create detailed consumer profiles, potentially leading to differential pricing strategies that target specific groups of shoppers rather than just the products themselves.

The report further claims that Walmart may implement pricing models that charge customers differently based on their identities and needs. For instance, it suggests that new parents could pay higher prices for baby products, or that prices might increase for items already in a customer's shopping cart, such as charging more for mayonnaise if the customer is also purchasing tuna.

Additionally, the report highlights Walmart's AI shopping assistant, "Sparky," suggesting that customers who utilize this tool tend to spend more money compared to those who do not. Groundwork Collaborative's president and CEO, Lindsay Owens, along with vice president of policy, advocacy, and research, Elizabeth Pancotti, authored the report.

In response, Dan Bartlett, Walmart's executive vice president of corporate affairs, issued an open letter on the same day, addressing Owens directly through social media and the company’s website. He refuted the claims made in the report, asserting that it mischaracterizes Walmart's pricing strategies and technological applications. Bartlett emphasized that Walmart has no plans to adopt dynamic pricing and has committed to avoiding it altogether.

He also contested the implications regarding Sparky, asserting that the company does not utilize AI to increase prices for customers. In a follow-up statement, Owens reacted to what she termed "baseless attacks," arguing that the confusion surrounding Walmart's pricing practices stems from the company's own inconsistent messaging. She contended that Walmart communicates one narrative in its public statements to customers, a different one to investors, and yet another to the United States Patent and Trademark Office.

Owens also released a new analysis of Walmart's patents, inviting the public to draw their own conclusions. She expressed concerns about the capabilities and safety measures associated with Sparky, particularly in light of a previous incident involving Hugging Face, an AI platform.

Groundwork Collaborative has previously participated in investigations, including a notable December 2025 Consumer Reports study regarding Instacart's pricing tests, which were said to have increased grocery costs for consumers. These tests were halted following significant backlash from both the public and political figures.