Walmart reiterates pledge against personalized pricing, disputes author’s claims on AI, shelf labels
by The Washington Times AI News Desk · The Washington TimesWalmart on Monday reiterated its pledge not to use AI or customer data to personalize prices and rejected claims that its digital shelf labels would be used for that purpose, responding to criticism from the author of a new book on corporate pricing practices, Fox Business reported.
In a public letter, Dan Bartlett, the retailer’s executive vice president of corporate affairs, said Lindsay Owens, author of “Gouged,” has repeatedly mischaracterized Walmart’s pricing practices and use of technology. “We price products, not people,” Mr. Bartlett wrote. He said Walmart does not and will not use a customer’s personal information, income, shopping history, urgency or willingness to pay to set an individualized price, and that it does not engage in dynamic pricing, such as raising prices during hot weather or ahead of a snowstorm.
Mr. Bartlett defended the company’s digital shelf labels, saying they replace paper tags and let approved price changes display more efficiently and consistently. He said the labels do not identify customers or set prices on their own. The ability to update prices faster, he said, is not evidence that Walmart uses or plans to use the technology for dynamic pricing. He made the same argument about Walmart’s patents, saying they are not evidence that the company intends to pursue individualized or dynamic pricing.
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Mr. Bartlett also rejected Ms. Owens’ claims about Sparky, Walmart’s AI shopping assistant, saying the company does not use AI to upcharge customers. Ms. Owens has cited higher average order values among Sparky users as a sign the tool could push shoppers to spend more. Mr. Bartlett said higher order values alone do not show that Sparky caused customers to spend more on individual items, or that they paid more for the same products. He said information shared with Sparky is not used to change prices.
Ms. Owens, president and CEO of Groundwork Collaborative, responded Monday that the confusion around Walmart’s pricing is of its own making. In a statement shared with Fox Business, she said Walmart tells customers one thing, investors another and the U.S. Patent and Trademark Office something different. She said Groundwork is releasing a new analysis of Walmart patents, which she described as showing that personal data is a critical element of pricing strategies the company is developing. Walmart disputes that interpretation, with Bartlett saying in his letter that the patents are not evidence of plans to pursue individualized or dynamic pricing. Ms. Owens also raised concerns about the safeguards governing the information Sparky can access, and asked Walmart to say what data the assistant can see, how it shapes recommendations and purchases, and whether sensitive consumer information could be exposed or misused.
Ms. Owens’ book, published Sept. 29, examines corporate pricing practices and argues that some deceptive tactics are used to cheat consumers, according to a description of the book. In recent posts on X, she alleged that Walmart has touted Sparky’s ability to increase spending and has developed patented technology that could vary prices based on consumers’ behavior and demand.
Mr. Bartlett’s letter follows a Sept. 25 letter in which Walmart President and CEO John Furner reaffirmed the company’s “Every Day Low Prices” strategy and said it prices “the product, not the person.” Mr. Furner outlined three commitments: Walmart will not set different prices based on who a customer is or the time of day, will not use information shared through Sparky to raise prices or hide lower-priced options, and will continue giving customers control over how their personal information is used.
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