{"id":23814,"date":"2026-04-08T20:44:39","date_gmt":"2026-04-08T20:44:39","guid":{"rendered":"https:\/\/incredipros.com\/?p=23814"},"modified":"2026-04-08T20:44:40","modified_gmt":"2026-04-08T20:44:40","slug":"are-digital-price-tags-driving-grocery-price-hikes","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=23814","title":{"rendered":"Are digital price tags driving grocery price hikes?"},"content":{"rendered":"<div>\n<p>Does your grocery store hike the price of milk during your hurried commute home? Is it raising the cost of ice cream during a July heat wave? Are you seeing \u201cpersonalized\u201d prices based on your income or shopping history? As technology advances, these scenarios are becoming increasingly realistic.<\/p>\n<div class=\"wp-block-media-text is-stacked-on-mobile\" style=\"grid-template-columns:25% auto\">\n<figure class=\"wp-block-media-text__media\"><video controls=\"\" src=\"https:\/\/www.bankrate.com\/brp\/2026\/04\/08153942\/Digital-price-tags.mp4\"\/><\/figure>\n<div class=\"wp-block-media-text__content\">\n<p>Put simply, it comes down to a small, digital screen that\u2019s replacing the paper price tag on some retailers\u2019 shelves. This battery-powered device is called an electronic shelf label, or ESL. Stores that use this technology can now change prices with a few clicks \u2014 or even allow an algorithm to do it automatically.<\/p>\n<p>ESLs are currently being used by major U.S. chains such as Walmart, Kroger, Whole Foods and Amazon Fresh, as well as by some stores in Canada, Europe and Asia. The global market for ESL products was estimated at $2.09 billion in 2025 and is projected to reach $7.32 billion by 2033, according to Grand View Research.<\/p>\n<\/div>\n<\/div>\n<h2 id=\"slippery-slope\" data-position=\"1\" data-beam-element-viewed=\"\" data-id=\"br-h2-1-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"The \u2018slippery slope\u2019 of digital price tags\" data-outcome=\"\">The \u2018slippery slope\u2019 of digital price tags<\/h2>\n<p>Retailers say ESLs lift the manual burden for store employees of maintaining paper price tags. They also claim ESLs make it easier to lower prices on perishables to help keep them from going to waste.<\/p>\n<p>However, consumer advocates worry the technology could make it easier for stores to surge prices during times of high demand \u2014 as well as to change prices for each consumer based on personal information, including through facial recognition capabilities.<\/p>\n<p>Surge pricing (also known as dynamic pricing) may seem absurd when it comes to groceries. However, consider how commonplace the practice has become among airlines, rideshare providers and ticket-sellers. Unlike these discretionary expenses, however, food is a necessity \u2014 and with budgets already stretched thin by inflation, the prospect of even higher prices can add a new layer of financial anxiety to your grocery trips.<\/p>\n<p>Various retailers that use ESL technology have responded to such concerns, stating they\u2019re not using it for price gouging \u2014 and that they don\u2019t plan to do so in the future.<\/p>\n<p>That said, ESL technology presents a \u201cslippery slope,\u201d with uses that could expand over time, says Ema Roloff, co-founder of digital strategy advisory firm Roloff Consulting.\u00a0<\/p>\n<div class=\"BlockQuote pb-8 BlockQuote--bordered flex flex-col items-center text-center md:text-left md:flex-row gap-3 md:gap-8 mb-8 md:mb-0\">\n<blockquote class=\"BlockQuote-text text-center md:text-left\"><p>\n        <q>Stores are not doing [dynamic pricing] right now while there\u2019s a lot of outrage over installing [digital] price tags. They\u2019re not going to rock the boat when it\u2019s at the top of people\u2019s minds. But down the line, when everybody\u2019s used to these price tags, stores won\u2019t necessarily be thinking about it the same way they are right now.<\/q><br \/>\n                    <cite class=\"PullQuote-cite text-gray-900 ml-0 md:ml-4\"><br \/>\n                \u2014 Ema Roloff, co-founder, Roloff Consulting<br \/>\n            <\/cite>\n            <\/p><\/blockquote>\n<\/div>\n<h2 id=\"consumers-take\" data-position=\"2\" data-beam-element-viewed=\"\" data-id=\"br-h2-2-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"A consumer\u2019s take: \u2018Subtle and built-in\u2019 practices\" data-outcome=\"\">A consumer\u2019s take: \u2018Subtle and built-in\u2019 practices<\/h2>\n<p>While some consumers don\u2019t pay much attention to digital price tags, others are wary of how they may impact a store\u2019s pricing practices. Among those with reservations is Patrick Alexander, an insurance claims adjustor and online content creator from Indianapolis, Indiana.<\/p>\n<div class=\"MarketMavenQuote\">\n<div class=\"\">\n<div>\n<blockquote><p>\n                \u201cThe one thing that\u2019s weird about this is the customer would never know it\u2019s happening because it\u2019s so subtle and built in. You spend $1.50 on Greek yogurt at 2:00 in the afternoon, and then after work you\u2019re spending $1.95 on the same thing. You may not even notice it because you\u2019re in a rush.\u201d<\/p>\n<p class=\"mb-0\">\n                        <cite>\u2014 Patrick Alexander, insurance claims adjustor, Indianapolis, Indiana<\/cite>\n                    <\/p>\n<\/blockquote><\/div>\n<\/p><\/div>\n<\/div>\n<p>Like Roloff, Alexander uses the term \u201cslippery slope\u201d to describe the use of ESLs. \u201cIf you can get away with doing five or 10 cents at a time, eventually you\u2019re going to do 50 cents or a dollar, two dollars,\u201d he says.<\/p>\n<p>Alexander says he avoids shopping at stores that use ESLs, as well as at stores that don\u2019t include prices on items\u2019 tags or shelf labels. \u201cThe subtleties of ripping people off \u2014 I guess you\u2019d call it that \u2014 are really getting ingrained,\u201d he says.<\/p>\n<h2 id=\"retailers-respond\" data-position=\"3\" data-beam-element-viewed=\"\" data-id=\"br-h2-3-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Retailers respond to price-gouging claims\" data-outcome=\"\">Retailers respond to price-gouging claims<\/h2>\n<p>Amidst all the talk of using ESLs for price gouging \u2014 and even legislation that aims to prevent it \u2014 two of the largest U.S. grocery retailers maintain they do not use the technology for such purposes.<\/p>\n<h3>Walmart<\/h3>\n<p>\u201cIf you talk to the people who shop in our stores every week, we think they will have a different view,\u201d says Robyn Babbitt, director of corporate communications for Walmart. \u201cThese labels are just a modern tool to help our associates do their jobs better, but the price you see is the same for everyone in any given store. They see the work we do every day to keep things affordable.\u201d<\/p>\n<p>Currently, around 2,300 Walmart stores are using digital shelf labels, and the retailer expects all its locations to be equipped with them over the next year. Walmart\u2019s website states that its prices are the same for all customers in a given store, and they remain consistent regardless of demand, time of day or who is shopping.<\/p>\n<p>Babbitt refers to a white paper published in 2025 by economists from the University of Texas at Austin, University of California San Diego, and Northwestern University. For their study, the researchers examined data from an unnamed major U.S. grocery retailer that implemented ESLs at more than 100 stores starting in October 2022. \u201cWe find virtually no surge pricing either before or after ESL adoption,\u201d they wrote, adding, \u201cOur results suggest that recent regulatory concerns regarding surge pricing in grocery retail are misplaced.\u201d<\/p>\n<h3>Kroger<\/h3>\n<p>Supermarket chain Kroger launched ESLs in dozens of its stores in 2018, and has since been installing them in additional locations.<\/p>\n<p>In 2024, two U.S. senators sent a letter to Kroger\u2019s CEO, stating their concerns that the technology could be used for dynamic pricing. Changing prices based on the \u201ctime of day, the weather, or other transitory events\u201d could enable \u201cstores to calibrate price increases to extract maximum profits at a time when the amount of Americans\u2019 income spent on food is at a 30-year high,\u201d read the letter written by Sen. Elizabeth Warren (D-Mass.) and former-Sen. Robert P. Casey, Jr. (D-Pa).<\/p>\n<p>In response to the senators\u2019 letter, Kroger released a statement that read, \u201cTo be clear, Kroger does not and has never engaged in \u2018surge pricing.\u2019 Any test of electronic shelf tags is designed to lower prices for more customers where it matters most.\u201d<\/p>\n<p>Kroger didn\u2019t respond to requests from Bankrate for comment for this article.\u00a0<\/p>\n<h2 id=\"legal-battleground\" data-position=\"4\" data-beam-element-viewed=\"\" data-id=\"br-h2-4-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"The legal battleground\" data-outcome=\"\">The legal battleground<\/h2>\n<h3>Federal legislation against grocery price gouging<\/h3>\n<p>While Walmart and Kroger have stated they\u2019re not using their ESL technology for price gouging, stores may be prohibited from ever doing so, thanks to pending federal legislation and various state laws already in place.<\/p>\n<p>At the heart of this legislative push is the Stop Price Gouging in Grocery Stores Act. Introduced in February 2026 by Sens. Ben Ray Luj\u00e1n (D-N.M.) and Jeff Merkley (D-Ore.), the bill would:<\/p>\n<ul class=\"wp-block-list\">\n<li>Ban electronic shelf labels in grocery stores larger than 10,000 square feet<\/li>\n<li>Prohibit grocery stores from practicing surveillance pricing, which is the use of personal data to set individualized prices for goods<\/li>\n<li>Requiring grocery stores to disclose the use of facial recognition technology<\/li>\n<\/ul>\n<div class=\"BlockQuote pb-8 BlockQuote--bordered flex flex-col items-center text-center md:text-left md:flex-row gap-3 md:gap-8 mb-8 md:mb-0\">\n<blockquote class=\"BlockQuote-text text-center md:text-left\"><p>\n        <q>With food costs rising each month, it\u2019s more important than ever that any new technologies implemented in grocery stores are helping to lower costs, not raise them. That is why I\u2019ve introduced legislation that is intended\u2026 to put common-sense guardrails in place at large retail stores and protect consumers.<\/q><br \/>\n                    <cite class=\"PullQuote-cite text-gray-900 ml-0 md:ml-4\"><br \/>\n                \u2014 Sen. Ben Ray Luj\u00e1n (D-NM)<br \/>\n            <\/cite>\n            <\/p><\/blockquote>\n<\/div>\n<p>Congresswoman Rashida Tlaib (D-Mich.) also introduced legislation in the House of Representatives in August 2025 that would ban ESLs.<\/p>\n<p>Both the House and Senate bills have been referred to committees for hearings, and whether either will be passed into law \u2014 at a time when Congress is narrowly divided \u2014 remains to be seen.<\/p>\n<h3>Price transparency bills introduced across 33 states in 2025<\/h3>\n<p>While federal lawmakers have been working on legislation, states have been introducing, and sometimes passing, bills of their own.<\/p>\n<p>Last year, more than 100 price transparency bills were introduced across 33 states and Washington, D.C., according to MultiState, a state and local government relations company. These included dynamic pricing disclosure laws, algorithmic pricing regulations and surveillance pricing protection measures.<\/p>\n<p>One supporter of such legislation is the United Food and Commercial Workers International Union (UFCW), which launched a national campaign to \u201cban the predatory practice of \u2018surveillance pricing.\u2019\u201d\u00a0<\/p>\n<div class=\"BlockQuote pb-8 BlockQuote--bordered flex flex-col items-center text-center md:text-left md:flex-row gap-3 md:gap-8 mb-8 md:mb-0\">\n<blockquote class=\"BlockQuote-text text-center md:text-left\"><p>\n        <q>Now is when you can put legal constraints around this, before it\u2019s largely adopted and being so abused that there&#8217;s no way to put the genie back in the bottle. Right now we could put the genie back in the bottle. And I think that&#8217;s the opportunity that folks need to realize.<\/q><br \/>\n                    <cite class=\"PullQuote-cite text-gray-900 ml-0 md:ml-4\"><br \/>\n                \u2014 Ademola Oyefeso, UFCW International vice president and director of legislative and political affairs<br \/>\n            <\/cite>\n            <\/p><\/blockquote>\n<\/div>\n<p>Oyefeso believes the federal bill may move more slowly than some state ones. \u201cYou might get traction in a couple of [state bills] this year, and then hopefully it sets the stage for the upcoming year after that.\u201d<\/p>\n<h2 id=\"efficiency\" data-position=\"5\" data-beam-element-viewed=\"\" data-id=\"br-h2-5-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Proponents cite efficiency of digital price tags\" data-outcome=\"\">Proponents cite efficiency of digital price tags<\/h2>\n<p>On the other side of the divide is the National Retail Federation (NRF), a trade association that represents grocery and department stores. It maintains that paper tags are outdated and inefficient and that updating prices electronically in one central location is a way to ensure better accuracy.<\/p>\n<p>\u201cBanning efficient methods to display accurate prices will increase the cost of doing business, meaning higher prices and fewer discounts for the consumer,\u201d Jason Straczewski, NRF group vice president of government relations and political affairs, told Bankrate in an emailed statement.<\/p>\n<h2 id=\"shopper-checklist\" data-position=\"6\" data-beam-element-viewed=\"\" data-id=\"br-h2-6-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Checklist for the concerned shopper\" data-outcome=\"\">Checklist for the concerned shopper<\/h2>\n<p>If your local grocery store uses ESLs, it can help to become better informed about its policies as well as how to ensure the amount you\u2019re charged matches what was listed on the shelf.<\/p>\n<h3>Take a photo of a digital price tag<\/h3>\n<p>It\u2019s technically possible for a price to change between the time you pick up an item and when you reach the register. For expensive items or those with detailed promotions, take a photo of the shelf tag. This could make things easier for you if the price rings up differently.<\/p>\n<h3>Read a price tag\u2019s fine print<\/h3>\n<p>Because ESLs sometimes pack a lot of information into a small screen, it pays to read any for small print carefully. Such details may include sales that require you to buy multiple products, as well as promotions in which a digital coupon must be clipped using the store\u2019s app.<\/p>\n<h3>Review your receipt before leaving the store<\/h3>\n<p>Don\u2019t wait until you\u2019re in the parking lot \u2014 or at home \u2014 to check your receipt. If the register\u2019s system didn\u2019t sync with a price listed in an aisle, show your receipt to a cashier or the customer service desk.<\/p>\n<h3>Know your state\u2019s laws on scanner accuracy<\/h3>\n<p>Various states or counties have laws regarding price accuracy or scanner errors. In some areas, consumers who are overcharged are entitled to the item for free, or to a refund that\u2019s greater than the price difference.<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong>Connecticut:<\/strong> If certain items scan higher at the checkout than the amount listed on the shelf or sticker, the customer is entitled to receive the item free, up to an amount of $20.\u00a0<\/li>\n<li>\n<strong>Michigan:<\/strong> If you\u2019re charged more than the displayed price, you can request a refund of the difference and may qualify for an additional bonus amount of 10 times the difference \u2014 not less than $1 or more than $5.<\/li>\n<li>\n<strong>New York:<\/strong> Various counties require stores to pay you a \u201csuper refund\u201d when a pricing error occurs. This is 10 times the amount of the error, up to $10.<\/li>\n<\/ul>\n<h3>Ask your store employees<\/h3>\n<p>Talk with an employee for more information about its pricing process:<\/p>\n<ul class=\"wp-block-list\">\n<li>Can prices be changed at any time of the day \u2014 or are they only changed outside of regular shopping hours?<\/li>\n<li>What\u2019s the policy if a price were to change between the time you picked up an item off the shelf and when you arrived at the checkout?<\/li>\n<li>Can prices vary among shoppers based on personal data?<\/li>\n<\/ul>\n<p>Consumers can ultimately take a stand by deciding where to shop or not to shop, says Roloff, of Roloff Consulting.<\/p>\n<p>\u201cThere\u2019s true power in deciding to take a step away from things you\u2019re seeing that make you uncomfortable,\u201d Roloff says. \u201cWhat practices am I allowing by still consuming from these companies? It can be a little fatiguing, but you have to figure out where your lines are and what\u00a0 you\u2019re not willing to cross. As a consumer it just requires paying more attention.\u201d<\/p>\n<div class=\"HelpfulCTA mx-auto flex flex-col items-center gap-6 my-6 py-12 text-base border-y border-gray-200\" data-helpful-cta=\"\" data-beam-element-viewed=\"\" id=\"did-you-find-this-helpful\" data-type=\"cta\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Did you find this page helpful?\">\n<div class=\"HelpfulCTA-initial w-full flex flex-col items-center gap-4\" data-cta-initial=\"\">\n<div class=\"HelpfulCTA-question text-lg font-bold text-center text-gray-900\">\n            Did you find this page helpful?<\/p>\n<div id=\"R4mSIWqObM\" class=\"hidden\">\n<div class=\"wysiwyg wysiwyg--sm wysiwyg--flush max-w-xs\">\n<p class=\"mb-6 text-base\">\n                            <strong class=\"block font-bold text-gray-900\">Why we ask for feedback<\/strong><br \/>\n                            Your feedback helps us improve our content and services. 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0-.323.322c-.075.15-.075.603-.075 1.226v7.68c0 .623 0 1.075.075 1.226.075.14.183.247.323.322.15.075.603.075 1.228.075h.16c.625 0 1.078 0 1.228-.075a.778.778 0 0 0 .324-.322c.075-.151.075-.603.075-1.227V5.423c0-.623 0-1.076-.075-1.226a.722.722 0 0 0-.324-.322c-.15-.076-.603-.076-1.227-.076h-.161Z\" class=\"icon-base\"\/><\/svg><\/span> <span class=\"text-base leading-4\">No<\/span><br \/>\n            <\/button>\n        <\/div>\n<\/p><\/div>\n<p>    <!-- Yes Form --><\/p>\n<p>    <!-- No Form --><\/p>\n<div class=\"HelpfulCTA-thankyou flex flex-col items-center gap-2\" data-cta-thankyou=\"\" style=\"display:none;\">\n<p>Thank you for your<br \/>\n            feedback!<\/p>\n<p>Your input helps us improve our<br \/>\n            content and services.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<p>Read the full article <a href=\"https:\/\/www.bankrate.com\/personal-finance\/digital-price-tags-efficiency-or-price-gouging\/\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does your grocery store hike the price of milk during your hurried commute home? Is it raising the cost of ice cream during a July heat wave? Are you seeing \u201cpersonalized\u201d prices based on your income or shopping history? As technology advances, these scenarios are becoming increasingly realistic. Put simply, it comes down to a<\/p>\n","protected":false},"author":1,"featured_media":23815,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[],"class_list":{"0":"post-23814","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-homes"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are digital price tags driving grocery price hikes? | IncrediPros<\/title>\n<meta name=\"description\" content=\"Does your grocery store hike the price of milk during your hurried commute home? 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