Walmart President and CEO John Furner says the retailer will not use artificial intelligence, customers’ income, shopping history or other personal information to charge different prices to different shoppers.
In a Sept. 25 letter to customers and members, Furner addressed concerns about how companies could use customer information and emerging technology to determine prices.
“We price the product, not the person,” Furner said.
Furner said Walmart’s pricing approach for more than 50 years has been based on Every Day Low Prices, which is intended to provide customers with consistent prices without having to determine the best day to shop or whether another customer is receiving a better price.
Prices can change when Walmart’s costs to purchase or transport products change, Furner said, but the company will not use factors such as a customer’s income, shopping history or immediate need to charge more.
The CEO also addressed the use of digital shelf labels in Walmart stores. Furner said the labels are intended to help ensure shelf prices match prices at checkout while reducing the time employees spend replacing paper price tags.
Furner said the company also will not use information customers provide to Sparky, Walmart’s AI shopping assistant, to determine personalized prices.
“When you engage with Sparky, that’s an invitation to serve you better, not to use your personal information to set a personalized price. We’ve never used the relationships our associates have with customers to charge more, and we won’t do that with AI.”
Furner outlined three commitments Walmart plans to maintain as its technology changes.
The company will not set different prices based on a customer’s identity or the time of day, he said. A customer’s income, shopping history, urgency or what Walmart believes the customer could afford will not affect the price.
Walmart also will not use information shared through Sparky or other shopping tools to raise a customer’s price or hide lower-priced products that meet the shopper’s needs, Furner said.
The company also pledged to continue allowing customers to decide whether to provide additional information for more personalized assistance and to explain how that information is used and protected.
Furner said Walmart employees will continue to oversee pricing and the company will monitor and test its technology to ensure it complies with those commitments.
“Thank you for trusting us with part of your family’s budget. If there’s one thing I hope you take from this note, it’s how much we value the trust you place in us. Technology will keep changing. Our responsibility to earn your trust and help you save money and live better won’t,” Furner said.
