Senators Warn Kroger's Digital Price Tags May Enable Gouging

U.S. Senators Elizabeth Warren and Bob Casey have accused supermarket giant Kroger of potential price-gouging through its adoption of electronic shelf labels (ESLs). In a letter to Kroger CEO Rodney McMullen, the lawmakers expressed concern that ESLs could enable dynamic pricing of groceries, potentially creating artificial scarcity and inflating prices of essential goods. Kroger, which operates nearly 3,000 stores nationwide, began implementing ESLs in 2018 under the "Kroger Edge" program. While initially promoted as a consumer-friendly technology offering video ads and personalized shopping assistance, the senators argue it could lead to "surge pricing" similar to ride-sharing services. The lawmakers' concerns reflect broader scrutiny of differential pricing practices across industries. The Federal Trade Commission recently launched an investigation into such tactics, which have been observed in sectors ranging from e-commerce to travel booking.

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