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The phrase "selling face" has taken on a new meaning.
Kroger, the largest grocery store chain in the United States, caused outrage among lawmakers with its plan to introduce facial recognition technology.
Congressmen are concerned that the technology can be used to create personalized advertising and collect customer data. The letter also emphasizes that such tools increase the risk of price discrimination, especially in areas with a predominance of African American and Hispanic populations.
The documents note that facial recognition technology can make mistakes and be biased. It is also noted that Kroger will use such systems to increase prices in areas with limited access to other stores.
To date, Kroger and other retailers are already using electronic shelf labels to quickly adjust prices based on time of purchase, store location, and other factors. However, the introduction of facial recognition will open up new opportunities for creating detailed customer profiles based on their gender and shopping habits.
In August, senators also sent a letter to Kroger executives expressing concerns about using personalized profiles to "determine the maximum price a customer is willing to pay". The letter says that such mechanisms can be used to automatically adjust prices on electronic price tags.
Kroger responded by saying that the company's business model is aimed at lowering prices to attract more customers. A company spokesperson stressed that the network has never used "dynamic pricing" and that testing electronic shelf labels is aimed at providing profitable offers.
Congress also demanded clarification of how the right of consumers to opt out of data tracking and targeted pricing will be protected. The letter notes that large retailers with a monopoly in the regions can profit by raising prices for essential products.
However, a Microsoft spokesperson denied this information, clarifying that the company does not provide Kroger with its technology for such purposes.
Source
Kroger, the largest grocery store chain in the United States, caused outrage among lawmakers with its plan to introduce facial recognition technology.
Congressmen are concerned that the technology can be used to create personalized advertising and collect customer data. The letter also emphasizes that such tools increase the risk of price discrimination, especially in areas with a predominance of African American and Hispanic populations.
The documents note that facial recognition technology can make mistakes and be biased. It is also noted that Kroger will use such systems to increase prices in areas with limited access to other stores.
To date, Kroger and other retailers are already using electronic shelf labels to quickly adjust prices based on time of purchase, store location, and other factors. However, the introduction of facial recognition will open up new opportunities for creating detailed customer profiles based on their gender and shopping habits.
In August, senators also sent a letter to Kroger executives expressing concerns about using personalized profiles to "determine the maximum price a customer is willing to pay". The letter says that such mechanisms can be used to automatically adjust prices on electronic price tags.
Kroger responded by saying that the company's business model is aimed at lowering prices to attract more customers. A company spokesperson stressed that the network has never used "dynamic pricing" and that testing electronic shelf labels is aimed at providing profitable offers.
Congress also demanded clarification of how the right of consumers to opt out of data tracking and targeted pricing will be protected. The letter notes that large retailers with a monopoly in the regions can profit by raising prices for essential products.
However, a Microsoft spokesperson denied this information, clarifying that the company does not provide Kroger with its technology for such purposes.
Source
