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Union witness warns committee electronic shelf labels could enable personalized 'surveillance pricing'
Summary
Haley Nicholson of the United Food and Commercial Workers testified that electronic shelf labels (ESLs) and associated cloud systems can permit individualized price changes based on customer data; lawmakers questioned how the technology works and whether it is in use in Tennessee. Sponsor took HB 2052 off notice for further work.
Haley Nicholson, deputy legislative director for the United Food and Commercial Workers (UFCW), testified to the subcommittee that electronic shelf labels (ESLs) are cloud-connected digital tags that can change prices in real time and, when linked to customer data, could enable individualized "surveillance pricing."
"These shelves and these new technologies are a threat to family budgets and everyone's individual privacy," Nicholson said, explaining retailers can push price changes in the cloud and, "there's no way for us to determine at this point with the technology if consumers are getting a deal or when the store could be potentially squeezing us for every dollar it thinks it could get from those customers." Members asked whether the technology uses cell-phone signals or facial recognition; Nicholson said retailers collect checkout history via member apps and that Kroger has tested ESLs with facial-recognition technology in other contexts.
Members discussed tradeoffs including supply-driven price changes and operational efficiencies; the sponsor said the bill targets individualized pricing rather than broad group discounts. After questions and discussion, the sponsor agreed to take HB 2052 off notice for additional stakeholder work.
