U.S. Senators say electronic supermarket price tags allows retailers to price gouge consumers

The lawmakers argue that by enabling price changes with just a click of a button, grocery stores can engage in price gouging.Photo byRithika GopalonUnsplash

U.S. Senators Elizabeth Warren (D-MA) and Bob Casey (D-PA) are raising concerns over the use of electronic shelf labels in grocery stores, accusing retailers of exploiting the technology to implement surge pricing.

The senators recently sent a letter to Kroger CEO Rodney McMullen, questioning the grocery chain's use of digital price tags that can be instantly altered based on temporary factors such as the time of day or weather conditions.

The lawmakers argue that this technology enables grocery stores to engage in price gouging by hiking prices on essential items when demand is highest, putting further strain on consumers already struggling with rising food costs.

By allowing prices to be adjusted at the click of a button, the senators believe the practice could lead to unfair pricing strategies that disadvantage shoppers during peak times. The move has sparked a broader debate on the ethics of surge pricing in the grocery industry as food prices reach record levels.