Walmart is on the defensive after an explosive report from Groundwork Collaborative that it patented technology to personalize prices. According to the Oct. 5 report, “The Walmart Watchtower,” several patent applications outline the data Walmart can collect about its users, from the songs on your playlist to your credit report.
Dynamic pricing is the practice of changing prices over a 24-hour period based on conditions such as weather, and it’s a practice that some policymakers are fighting against. Surveillance pricing, which is similar, uses customer behavior and characteristics to price the same products differently.
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“Combined with the long list of personal data it collects about shoppers, described in its most recent privacy notice, these patents show that Walmart builds detailed consumer profiles – and the infrastructure to deepen them – apparently so it can price people, not products,” the report said.
The report goes on to allege that Walmart plans to charge more based on who the customer is and what their needs are, such as charging new parents more for baby products. Another example is adjusting prices based on the items in one’s cart, such as charging more for mayonnaise if someone already buys tuna.
The report also discusses Walmart’s in-house shopping assistant, “Sparky,” and claims that customers who use it spend more than those who don’t (and that Walmart executives brag about it).
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The report is authored by Lindsay Owens, President and CEO of Groundwork, and Elizabeth Pancotti, Vice President of Policy, Advocacy and Research.
Walmart’s executive vice president of corporate affairs, Dan Bartlett, responded to the report the same day with an open letter on X (and on Walmart’s website) specifically aimed at Owens. He denied Groundwork’s accusations, saying the report repeatedly misrepresents Walmart’s pricing practices and use of technology. Walmart will not pursue dynamic pricing and has committed not to do so, he said.
“Your comments about Sparky also draw unfounded conclusions. We do not use AI to bill our customers,” he added.
Owens then responded to the “baseless attacks” on October 5 with a new statement. She said: “The confusion around Walmart’s pricing practices is of its own making. Walmart says one thing in its damage control letters to customers, another to its investors behind closed doors, and another completely different thing to the United States Patent and Trademark Office.
She said she released a new analysis of Walmart’s patents so Americans can decide for themselves. She also expresses concerns about Spark’s capabilities and safeguards, particularly in the wake of the Hugging Face incident.
Groundwork Collaborative was also part of Consumer Reports’ December 2025 investigation into Instacart’s price testing, which it said was increasing customers’ grocery bills. Instacart ended testing after public outcry from customers and politicians.
Topics
Artificial intelligence
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