Washington, D.C. – U.S. Senators Bob Casey (D-PA) and Elizabeth Warren (D-MA) are voicing serious concerns regarding Kroger’s implementation of dynamic pricing through digital price tags, warning that this strategy could exploit American families already struggling with rising grocery costs.
Kroger, the largest supermarket chain in the U.S. with nearly 3,000 stores and over 400,000 employees, has adopted Electronic Shelving Labels (ESLs) that allow for real-time price adjustments based on various factors, such as time of day and weather conditions. The Senators fear this could lead to price gouging, particularly at times when consumers can least afford it.
“The increased use of dynamic pricing will drive company profits higher—leaving consumers with the bill,” the Senators stated in a joint letter. “It is outrageous that, as families continue to struggle to put food on the table, grocery giants like Kroger continue to roll out surge pricing and other corporate profiteering schemes.”
Kroger has been expanding its use of ESLs since 2018, now employing them in 500 stores nationwide. This technology raises concerns as it could allow the retailer to maximize profits amid widespread inflationary pressures on grocery prices.
Since November 2023, Senator Casey has been investigating “greedflation,” which refers to corporate price gouging that disproportionately impacts family budgets. His scrutiny has previously led to inquiries into other major retailers like Target and Amazon regarding their pricing strategies.
In recent months, Senator Casey has introduced two legislative proposals aimed at protecting consumers from such practices. The Price Gouging Prevention Act seeks to ban excessive price hikes, while the Shrinkflation Prevention Act would empower regulatory bodies to combat deceptive practices like reducing product sizes without lowering prices.
Senator Casey has also published a series of reports detailing corporate practices that harm consumers. His investigations cover various issues, including the effects of price increases on staple foods and the phenomenon of “shrinkflation,” where products are downsized but retain their original prices. Recent reports have highlighted hidden fees imposed by corporations, further straining American family budgets.
As the debate continues, Senators Casey and Warren are urging Kroger and other grocery chains to prioritize consumers over profits, especially in these challenging economic times.