Grocery giants are swapping paper tags for digital displays, and it could cost you way more at the register than you realize
An algorithmic trap?
Grocery giants are swapping traditional paper tags for digital displays, and it could cost shoppers way more at the register than they realize. According to The Guardian, while these electronic shelf labels, or ESLs, might look like a simple tech upgrade, a new report warns they are poised to drive up prices and threaten tens of thousands of jobs across the United States.
The AFL-CIO Tech Institute released a report on September 8, 2026, titled ‘Priced Out, Pushed Out: Electronic Shelf Labels Raise Prices and Shrink Paychecks’, which highlights the serious risks associated with this shift. According to the analysis, the universal adoption of these digital labels could cost workers between $1.6 billion and $6.9 billion in lost wages annually. Even more concerning, the report estimates that between 44,223 and 191,633 jobs could be affected.
The labels are wireless, digital displays that connect to a central database, allowing retailers to change prices with the push of a button. While manufacturers market them as a way to increase accuracy and reduce food waste, the reality is far more complex. The technology integrates directly with algorithmic pricing software, which is the same type of system used by online retailers to implement dynamic or surge pricing.
These labels are not just static price tags
Sunny Glottmann, policy and programs manager at the AFL-CIO Tech Institute and co-author of the report, explained that these labels create an infrastructure that makes rapid, algorithmic price changes much easier to implement at scale. This is a major concern for consumers who are already struggling with grocery costs.
Because these systems can access vast amounts of personal data, they enable surveillance pricing. This means stores can change prices based on what they know about you, such as your purchase history or even your location.
Lauren McFerran, executive director of the AFL-CIO Tech Institute and former chairman of the National Labor Relations Board, noted that this technology enables retailers to extract the absolute most money out of shoppers. She also pointed out that it allows companies to squeeze workers as much as is humanly possible.
The impact on workers is already being felt as retailers shift toward automation
Ademola Oyefeso, vice-president of UFCW International, highlighted that labor cuts occur gradually. Workers who typically spend their time updating physical tags on shelves see their hours dwindle. As he put it, someone with a full-time job might slowly move to part-time, and eventually to no time. He emphasized that for over 100 years, stores have relied on paper labels, which helped build trust by ensuring that every customer pays the same price regardless of the day or time.
The potential for price manipulation is also significant. Some manufacturers market their products by highlighting how retailers can increase profits by raising prices during peak shopping times or in response to a competitor being out of stock.
For instance, coffee could become more expensive during the morning rush, or allergy medications could see a price hike when pollen counts are high. This moves away from tracking the actual market value of goods and toward charging whatever a specific consumer is willing to pay.
The threat to customers’ wallets is supported by data
A May poll from the United Food and Commercial Workers union found that 68% of Americans believe surveillance pricing will increase grocery costs, and 67% support a ban on digital price tags. Several states have already begun to take action. Maryland became the first state to ban surveillance pricing in April, followed by Connecticut in June and New Jersey in July.
The shift is happening rapidly. While ESLs were created in the early 1990s, they really began gaining traction in the 2010s across Europe. In the U.S., major retailers like Kroger, Aldi, and Whole Foods have already installed them in thousands of stores. Walmart, for example, has deployed them in 2,300 locations and plans to fully implement them by the end of 2026.
Beyond the pricing concerns, the loss of human workers makes the shopping experience worse. When stores reduce staff, shelves often go unstocked for longer periods, and it becomes harder for customers to find someone to help them. Workers also perform essential tasks like clearing spills and ensuring store safety. As retailers continue to prioritize automation, the human element that makes a store pleasant to navigate is at risk of disappearing entirely.
This was an expected outcome
The AFL-CIO report makes it clear that these technologies are designed to automate work, which directly leads to smaller paychecks for retail employees. For example, the company Pricer marketed its products by claiming that a business in the UK was on track to cut £1,000,000 in worker wages and benefits in the first year of using ESLs.
If this trend continues, the financial burden on grocery workers will be immense. Under one of the projections in the report, a single worker could lose the equivalent of nearly two months of rent in annual wages.
As grocery prices continue to surge, these digital tools are only making it harder for families to manage their budgets. The report concludes that the only way to truly protect consumers and workers is to completely ban the technology being used to facilitate these predatory pricing and labor-cutting practices. Without clear legislative action, the convenience of a digital price tag may come at a hidden, and very high, cost to everyone walking through the aisles.
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