A pair of recent patents for Walmart are sparking fears online that the retail giant could one day hit shoppers by instantly raising prices to match demand.
As PYMNTS reported, the two patents use machine learning to optimize pricing of items. One is a "system and method for dynamically and automatically updating item prices" for cutting down the prices of items. The other uses machine learning to recommend prices based on demand.
As it stands, there is no indication that these patents would be used to raise prices dynamically like Uber does with ride-sharing fares. Nor is there a plan to take price-setting out of the hands of humans, per the company's comments to Financial Times.
Walmart has been rapidly adopting new technology to modernize its stores. It introduced electronic shelf tags across over 5,000 U.S. stores in what was one of the largest retail upgrades. Those tags enable real-time price changes for multiple products.
Artificial intelligence is another technology the brand is using to aid associates in catching spoiled produce. That is an important move as the company faces backlash for food waste and falling short of its climate pledges.
Using technology for pricing isn't necessarily a bad thing, but users on the social platform X were concerned that Walmart would change course on the technology in the future.
A post by the nonprofit newsroom More Perfect Union drew a significant reaction on X.
A user predicted: "2019: eggs are $1.40. 2025: eggs are $4.71. 2026: eggs are $2.58. 2027: eggs are $2.58 but $4.99 between 5-7pm because Walmart noticed that's when you shop."
"They are creating a system where prices are not based on cost + markup, but on 'value extraction,'" another commenter suggested. "This is the shift from retail to gambling, where the house (Walmart) always adjusts the odds (price) to ensure it wins."
Walmart is adamant that this system isn't designed to create a system that will react to demand by raising prices.
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"We don't participate in surge pricing," a spokesperson told Financial Times. They clarified that the patents are for optimizing markdowns and empowering humans to make pricing decisions rather than replacing them.
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