LOUISVILLE, Ky. — Grocery chain Kroger denied reports from The New York Times, and most recently, The Nation, that it is using facial recognition in stores in connection with dynamic pricing, which a cybersecurity expert said could be problematic. 

What You Need To Know

  • Two U.S. senators wrote a letter to Kroger in 2024, claiming the grocery chain was using facial recognition technology in stores

  • A Kroger spokesperson said the store's Louisville Division is not using the technology

  • Six U.S. House representatives also sent a letter to Kroger, expressing concern facial recognition devices would cause dynamic pricing

  • Kroger said as it’s considering new technology in its stores, privacy and security are always key considerations

Dave Hatter, cybersecurity expert, said facial recognition technology works by turning the shape of one's face into a set of numbers through an algorithm.

“It scans your face, converts it to some sort of data based on its algorithm and then compares that to a database to say, 'OK, can I identify this person,'” said Hatter, Intrust IT cybersecurity consultant.

In Aug. 2024, Sen. Elizabeth Warren, D-Mass., and then-Sen. Robert Casey Jr., D-Pa., wrote a letter to Kroger's chairman and CEO, claiming Microsoft and Kroger are planning “to place cameras at its digital displays, which will use facial recognition tools to determine the gender and age of a customer," the senators said in the letter. 

“When you walk in the store, if they can identify you, they can potentially send you deals to your phone ... the last time you were here, you bought these things. They're on sale this week. Or here's a coupon for that,” Hatter said.

In October, six U.S. House representatives penned a letter to Kroger, expressing concern the store’s digital price tags could be paired with the facial recognition to change prices based on demographics, also known as dynamic pricing.

“If I can identify you and I know that you're from an affluent neighborhood, could I charge you more for the bar of soap than I would the next person that came along? Well, yes, I could,” Hatter said.

In response, a Kroger spokesperson said it does "not use facial recognition technology in connection with electronic shelf labels or pricing." 

"To me, that is kind of a red herring," Hatter said. "If that's their answer, it's clearly because they want to know who you are and be able to sell you more stuff at less expense." 

Kroger added it "does not use facial recognition in the Louisville Division," while a Microsoft spokesperson said "Kroger is not using Microsoft facial recognition technology, and the current digital price tag technology being used is not the technology we piloted in 2019." 

Hatter argued if that technology were to be used as the data gets bought, sold and potentially breached, it can be used against consumers. 

“If I go in and I buy six jars of mayonnaise every week or 30 pounds of bacon and you can connect that to me and there's this more data about me out there, can that be used against me somehow?" Hatter said. "Maybe I can't get insurance because I’m eating too much bacon." 

Kroger said as it’s considering new technology in its stores, privacy and security are always key considerations.

The Kentucky Consumer Data Protection Act will go into effect in 2026. Gov. Andy Beshear, D-Ky., signed the bill into law in 2024. The act establishes certain consumer rights relating to personal data, including the rights to delete personal data provided by the consumer.