Instacart faces FTC scrutiny over AI pricing tool – Digital Watch Observatory
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AI-based price testing at Instacart has triggered a probe by the Federal Trade Commission.
US regulators are examining Instacart’s use of AI in grocery pricing, after reports that shoppers were shown different prices for identical items. Sources told Reuters the Federal Trade Commission has opened a probe into the company’s AI-driven pricing practices.
The FTC has issued a civil investigative demand seeking information about Instacart’s Eversight tool, which allows retailers to test different prices using AI. The agency said it does not comment on ongoing investigations, but expressed concern over reports of alleged pricing behaviour.
Scrutiny follows a study of 437 shoppers across four US cities, which found average price differences of 7 percent for the same grocery lists at the same stores. Some shoppers reportedly paid up to 23 percent more than others for identical items, according to the researchers.
Instacart said the pricing experiments were randomised and not based on personal data or individual behaviour. The company maintains that retailers, not Instacart, set prices on the platform, with the exception of Target, where prices are sourced externally and adjusted to cover costs.
The investigation comes amid wider regulatory focus on technology-driven pricing as living costs remain politically sensitive in the United States. Lawmakers have urged greater transparency, while the FTC continues broader inquiries into AI tools used to analyse consumer data and set prices.
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