# US Retailers Use AI Pricing Tools, Spark Consumer Fears > US retailers' AI pricing tools cause consumer anxiety over personalized pricing and data use. - Title: US Retailers Use AI Pricing Tools, Spark Consumer Fears - Summary: US retailers' AI pricing tools cause consumer anxiety over personalized pricing and data use. US consumers worry AI pricing tools set different prices based… - Keywords: ai pricing tools, dynamic pricing, personalized pricing, walmart, ftc, state laws, algorithmic pricing, surveillance pricing, electronic shelf labels, target, business, finance - Source: ABC News — https://abcnews.com/Technology/wireStory/consumer-apprehension-grows-us-retailers-adopt-ai-assisted-137357982 - Author: ABC News - Read time: 1 min - Topics: ai pricing tools, dynamic pricing, personalized pricing, walmart, ftc, state laws, algorithmic pricing, surveillance pricing, electronic shelf labels, target, business, finance ## Consumer anxiety over AI pricing U.S. consumers feel angry and confused about how restaurant chains and major retailers set prices using high-tech tools. > U.S. consumers aren't just frustrated with high prices. They're angry and confused about the increasingly high-tech ways that restaurant chains and major retailers are setting those prices ## Digital price tags replace paper Digital price tags are rapidly replacing paper ones in grocery aisles across the U.S. retail sector. > Digital price tags are rapidly replacing paper ones in grocery aisles ## AI tools predict customer responses Artificial intelligence tools help businesses decide prices by predicting how customers might respond to changes. > Artificial intelligence tools help businesses decide what to charge by predicting how customers might respond ## Dynamic pricing concerns Dynamic pricing adjusts prices based on market conditions, including supply and demand, but consumers assume it only raises prices. > Dynamic pricing means adjusting prices in response to changing market conditions, including supply and demand ## Personalized pricing practices Personalized pricing offers different prices based on locations, incomes, web-browsing habits and other shopper information. > Personalized pricing means offering customers different prices and discounts based on their locations, incomes, web-browsing habits and other information about individuals or groups of shoppers ## Walmart CEO clarifies pricing Walmart CEO John Furner says digital price tags save workers' time and keep prices up to date without raising prices based on weather or individual shoppers. > We price the product, not the person ## Consumer data concerns Companies aren't always transparent about customer data collection and use, leading to consumer suspicion and speculation. > For example, social media posts falsely imply that electronic shelf labels walmart plans to put in all its u.s. stores scan shoppers' faces or cellphones to set individualized prices ## State-level pricing laws At least 30 states have considered pricing bills this year, including measures addressing algorithmic and personalized pricing. > According to the national conference of state legislatures ## FTC proposes data transparency rules The Federal Trade Commission has proposed enforcement policies warning businesses that failing to disclose personal data use could violate consumer protection laws. > The federal trade commission has proposed an enforcement policy warning businesses that failing to disclose their use of personal data to set individualized prices could violate consumer protection law ## Target settlement with California Target agreed to a $5 million settlement and banned geofencing technology after california prosecutors sued over app pricing discrepancies. > Target agreed to a $5 million settlement and a ban on using so-called geofencing technology to increase prices ## Key takeaway US consumers worry AI pricing tools set different prices based on personal data, leading to state-level regulations and FTC scrutiny.