TECH NEWS | ANALYSIS
Sobeys invests $51M in digital price tag tech The move comes as the tech takes on criticism in the United States
The campaign also seeks to ban “surveil- lance pricing,” a practice that adjusts prices based on individual customer data, and to protect union jobs from being replaced by AI-driven technology. The union argued that electronic shelf labels could result in job losses, as skilled grocery workers may be displaced by automation. Last week, Maryland lawmakers passed the Protection from Predatory Pricing Act, a bill that, if signed by Gov. Wes Moore, would make Maryland the first state to ban surveillance pricing. This practice allows retailers to charge different prices for the same item simultaneously, based on data collected about individual shoppers. —Bill Wilson Gedye commended Maryland lawmakers for addressing the issue but criticized the bill’s loopholes, which she said would limit its impact. She urged other states consid- ering similar legislation to adopt stronger consumer protections. LOOPHOLES AND WEAK ENFORCEMENT RAISE CONCERNS Critics point to several provisions in the bill that undermine its ban on surveillance pricing. Among them: • The ban applies only to using personal data to set higher prices, without estab- lishing a baseline or standard price. Without a standard price, retailers can market all prices as discounts • Loyalty and membership programs are exempt, even if prices offered through these programs are higher • Subscription-based pricing is also exempt, leaving room for potential abuse Enforcement provisions are another sticking point. The bill does not allow con- sumers to sue companies for violations, a departure from Maryland’s primary con- sumer protection law. Instead, enforcement is left to the Maryland Attorney General, who must notify companies of violations and give them 45 days to address the issue before taking legal action. —Bill Wilson
CANADIAN GROCER SOBEYS is pre- paring to introduce electronic shelf label technology, according to multiple reports. JRTech Solutions and Pricer AB are part- nering with Sobeys to implement the $51 million system in approximately 300 to 350 stores. The rollout includes multicolor electronic shelf labels and the necessary store infra- structure, with an 18-month deployment scheduled to begin in May. In 2024, Walmart announced plans to
equip all its U.S. stores with digital shelf labels, a move that has faced criticism. In February, the United Food and Commercial Workers International Union (UFCW), the largest union representing grocery, retail, and food processing workers, publicly opposed the technology. The UFCW launched a national cam- paign, titled “Affordable Groceries and Good Jobs Campaign,” to advocate for legislation requiring paper shelf labels in retail stores larger than 10,000 square feet.
Does Maryland’s measure on surveillance pricing do enough ? Lawmakers made revisions that favor retailers
The bill, H.B. 895, initially drew strong opposition from the Maryland Retail Alliance, but the group dropped its resis- tance after lawmakers added several exemptions.
MARYLAND GOV. WES MOORE recently signed the first law putting restrictions on surveillance pricing. Surveillance pricing allows retailers to charge different prices for the same item at the same time based on data collected about individual shoppers. The bill, H.B. 895, initially drew strong opposition from the Maryland Retail Alli- ance, but the group dropped its resistance after lawmakers added several exemptions. Consumer Reports , which actively engaged in the legislative process, expressed disap- pointment with the final version, saying it falls short of adequately protecting
consumers. “Surveillance pricing can drive up the price of food,” said Grace Gedye, senior policy analyst at Consumer Reports . “Retailers have a lot of data about individ- ual shoppers—how often we search for or hover over particular items, whether we live near competitor stores, inferences about our likes and dislikes, our dietary needs, our income, our family size and more. Sur- veillance pricing allows companies to take advantage of that information asymmetry and charge you as much as they think you’re individually willing to pay.”
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