Brandon Fletcher
Walmart is facing scrutiny following a revealing report from Groundwork Collaborative, which claims the retail giant has developed patented technology aimed at customizing prices. The October 5 report titled “The Walmart Watchtower” details various patent applications that outline the extensive data Walmart can gather about its customers, including everything from playlist selections to credit histories.
Dynamic pricing refers to the strategy of adjusting prices within a 24-hour timeframe based on factors such as weather conditions. This pricing model has drawn criticism from some policymakers. Similarly, surveillance pricing employs customer behavior and characteristics to set different prices for the same products.
The report asserts, “In conjunction with the extensive personal data it collects from shoppers, as highlighted in its latest privacy notice, these patents indicate that Walmart is constructing detailed consumer profiles—along with the infrastructure to enhance them—presumably to set prices based on individual consumers rather than the products themselves.”
Specifically, the report alleges that Walmart intends to implement higher charges based on customer identity and needs; for instance, it may charge new parents more for baby products. Another example includes adjusting prices based on the contents of a customer’s shopping cart, such as increasing the price of mayonnaise if a customer is already purchasing tuna.
The report highlights Walmart’s proprietary AI shopping assistant, “Sparky,” claiming that customers who utilize this feature tend to spend more than those who don’t, a fact that executives at Walmart are reportedly proud of.
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The report was authored by Groundwork’s president and CEO, Lindsay Owens, alongside its vice president of policy, advocacy, and research, Elizabeth Pancotti. In response to the findings, Dan Bartlett, Walmart’s executive vice president of corporate affairs, issued an open letter on X and Walmart’s website directed at Owens. He refuted the claims made by Groundwork, stating that the report misrepresents Walmart’s pricing strategies and technological applications. Bartlett emphasized that Walmart does not intend to adopt dynamic pricing practices.
He stated, “Your allegations regarding Sparky also draw unfounded conclusions. We do not apply AI to increase our customers’ charges.”
In turn, Owens addressed what she termed “baseless attacks” on October 5 with a new statement. She remarked, “The ambiguity surrounding Walmart’s pricing strategies is self-inflicted. Walmart communicates one narrative in its damage-control letters to customers, another to its investors behind closed doors, and a completely different message to the United States Patent and Trademark Office.”
Owens mentioned that she has released a new analysis of Walmart’s patents, enabling Americans to form their own opinions. She also expressed concerns regarding the capabilities and safety measures of Sparky, especially in light of the recent Hugging Face incident.
Groundwork Collaborative was also involved in the December 2025 Consumer Reports investigation concerning Instacart’s pricing experiments, which allegedly increased customers’ grocery expenses. Following public backlash from consumers and politicians, Instacart discontinued those tests.
Topics Artificial Intelligence
Daniel Mercer
