The news: Two more states have advanced legislation to impose limits on surveillance pricing after Maryland became the first to do so in April.
How we got here: Dynamic pricing is becoming a hot-button issue as consumers grow more worried about their finances. As expenses rise, households are becoming more sensitive to tactics that could further diminish their buying power. At the same time, lawmakers are paying closer attention to retailers’ use of electronic labels and algorithmic pricing amid concerns that such tools could lead to surge pricing and price gouging.
Implications for retailers: Faced with growing political and consumer pressure, companies need to respond with transparency.
Some are trying to do just that: Walmart spent roughly 15 minutes during last week’s Associates Week and shareholder meeting addressing whether it would experiment with shelf-label pricing. It emphasized its commitment to consistent pricing and said it has neither the plans nor the capability to personalize in-store prices for individual shoppers.
But those that remain silent risk losing shopper trust and inviting more political scrutiny.
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