WALMART rival Kroger is being investigated for its use of electronic tags in stores across the United States.
United States Senators Elizabeth Warren and Bob Casey have revealed that they are investigating the network to see if they are currently using dynamic pricing.
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Kroger is the largest supermarket operator in the United States, with nearly 3,000 stores nationwide and 400,000 employees.
Many other companies use “dynamic pricing,” including airlines, hotels and, most notably, the car-sharing service Uber.
Surge pricing occurs when a company increases or decreases the price of a product or service based on demand.
The practice of increasing prices on groceries can become controversial because it is an essential item.
However, Kroger is not the only chain to practice dynamic pricing.
Its rival Walmart announced it would start using electronic labels on store shelves starting in June.
No information has been released as to whether they will also be under investigation.
Warren and Casey wrote a letter to Kroger CEO Rodney McMullen expressing concerns that digital shelf tags would be used to price-gouge customers during peak shopping times.
Price gouging occurs when a company sells essential goods or services at a higher than normal price, usually during a state of emergency or disaster.
Kroger began testing electronic shelf labels in 2018 and has since expanded the practice to more than 500 stores across America.
The senators requested information from the network about how it uses technology and its justification, according to the Cincinnati Inquisitor.
“These digital price tags could allow Kroger and other grocery chains to transition to dynamic pricing,” Warren and Casey wrote in the letter.
“In which the price of basic household goods may increase based on the time of day, weather, or other transitory events.
“Allow stores to calibrate price increases to extract maximum profits at a time when the amount of Americans’ income spent on food is at a 30-year high,” the report said. letter to read.
Warren and Casey continued to share their concerns about food prices being “priced like airline tickets” with the new electronic shelf labels.
Kroger Refund Policy
Kroger shoppers can return items with or without a receipt.
All Kroger Co. store families can accept returns on items purchased at any location within 30 days of purchase.
Returns with receipts:
- Customers can use digital or paper receipts to get a refund
- The refund will be returned to the same payment method in which the purchase was made. Returning a card or returning cash
Returns without receipts:
- Customers who wish to return more than $10 will receive a gift card for store merchandise for the value
- Customers who spent less than $10 will receive cash
But Kroger said it is looking to attract customers with lower prices to get them to one of its 2,750 locations in 35 states.
“Kroger’s business model is to reduce prices over time so that more customers shop with us,” a spokesperson told the Cincinnati Enquirer.
“Everything we do is designed to support this strategy, and customers are shopping more with Kroger now than ever before because we are fighting inflation and offering great value.
“Any trial of electronic shelf labels is aimed at further reducing prices for customers where it matters most. To suggest otherwise is not true.”
Senators Warren and Casey are demanding answers and expect Kroger to respond by August 20th.
“It is outrageous that while families continue to struggle to afford to put food on the table, grocery giants like Kroger continue to implement accelerated pricing and other corporate profiteering schemes,” the senators wrote in their letter to McMullen.
The US Sun has reached out to Kroger for comment.
Walmart believes the new shelf labels make a positive difference and provide customers with “an even better shopping experience.”
The retail giant revealed that it helps save workers a lot of time when changing labels, as previously it took two days to change them all.
KROGER MAKES A MISTAKE
Meanwhile, Kroger recently had to issue an apology after it accidentally overcharged a customer at checkout.
The grocery chain accidentally charged sales tax on food at some stores in Cincinnati, Ohio.
In Ohio, any food not consumed on-site, including food purchased at grocery stores, is exempt from sales tax.
However, some customers noticed that the chain charged more on their receipt, Fox affiliate XIX reported.
“We encountered an issue today where customers were mistakenly charged sales tax on certain food items during checkout,” said a Kroger spokesperson.
“We have resolved the issue and apologize for the inconvenience to our customers.
“The customer service desk or Kroger Customer Service at 1-800-576-4377 is available to assist customers who have been improperly charged for these products.”
This story originally appeared on The-sun.com read the full story
