Kroger data selling and AI surveillance pricing hearing
A third of Kroger’s net income last year came from selling the data it harvests on shoppers, $527 million in 2024. Stores are now installing digital shelf labels that can change prices in real time, paving the way for AI surveillance pricing that figures out the most each person will pay and charges exactly that. Delta’s former president Glenn Hounstein described a partnership with Fetcher to re-engineer pricing so every fare is personal, available to you, the individual. At a hearing, the practice was called the unholy trinity of spying, ripping people off, and taking jobs.
Trascrizione (en)
This is one of the biggest scams in American history, this marriage between the AI industry and these mega corporations. And they're trying to pull it off against every American consumer. AI surveillance pricing is the unholy trinity of everything Americans hate, spying on people, ripping them off, and taking away jobs. Let me just talk about each of those briefly in turn. I'm first spying on people. Did you know that your neighborhood grocery store is amassing your data and tracking your purchases all for their profit? For example, take Kroger. Kroger is not just a grocery store, though it is certainly that, one of the largest. It is a data-selling megacorporation. Kroger's loyalty program has a treasure trove of data on you if you're one of their customers. one kroger customer got a copy of his shopping profile recently you want to guess how long it was 62 pages 62 pages of personalized data on this one person based on his shopping history Last year Kroger earned over million from selling yes selling the data that it harvests from its loyal customers and giving it to other corporations. Do you know that accounts for 33% of its net income last year? A third of its income came from selling the personal data of its own customers. Let me to say that again. Kroger made half a billion dollars by tracking its customers in store and online and then selling that to other people. Second, ripping off consumers. You know, AI weaponizes your data against you for profit. And I'll give you an example. On Delta's second quarter 2025 earnings call, Delta's former president, Glenn Hounstein, revealed its partnership, Delta's that is, with an outfit called Fetcher, which is a company that specializes in AI surveillance pricing. Now after that earnings call, Bloomberg uncovered a Fetcher white paper that describes using AI with airlines to replace simple flat fares with a complicated pricing scheme that will vary the fare based on what they believe individual customers are willing to pay Fetcher went on this company to say that it's time for the airlines to enter an exploitation phase of AI technology. Think about that. These companies are salivating at the prospect of using AI technology and your personal data to exploit you, and they're not even pretending otherwise. Finally, taking away jobs. You know, this practice of surveillance pricing is making its way to brick and mortar stores. It's not just online. Here's an example of that. Kroger and Walmart and other retailers are rapidly introducing digital shelf labels all across their stores. We'll give you an example over my shoulder here of a picture. Here's a digital shelf label. These are appearing everywhere across the United States. these labels can be used because they can be changed instantaneously. They can be used to implement AI surveillance pricing in the store not just online Now of course this will end up costing jobs in the store certainly But think about where all of this is heading Delta former president I mentioned a moment ago, really put it best when he said that the goal is, the goal of the industry, the goal of all of these industries, these mega corporations and the AI industry that's working with them, the goal is to charge what they call personalized prices, you know, as if it's a benefit to you. personalized prices. Here's what he said. This is a full re-engineering of how we price and how we will be pricing in the future. We will have a price that's available on that flight, on that time, to you, the individual. Let me just translate. In other words, they're going to figure out how they can rip you off one person at a time. They're not going to charge you the same fare they charge your neighbor. They're not going to charge you the same fare as the guy sitting next to you in the seat. They're going to figure out how they can bilk you out of every dime they're willing to pay every time you step on an airline. And it's not just going to be them. It's going to be the grocery stores and everybody else until we figure out how to bring transparency, how to bring honesty, and some protections to the American consumer.
