The U.S. Federal Trade Commission (FTC) is investigating Instacart following reports that the company's AI-powered pricing tool, Eversight, may be charging customers different prices for the same groceries. Sources familiar with the matter revealed that the FTC has issued a civil investigative demand to Instacart, seeking information about the Eversight tool. This probe comes amidst public criticism of Instacart's pricing practices, highlighted by a recent study.
The study, conducted by advocacy groups Groundwork Collaborative, Consumer Reports, and More Perfect Union, observed that shoppers in four cities were presented with different prices for identical grocery items at the same stores. On average, the total cost for the same shopping list varied by 7%, with some instances showing prices up to 23% higher for certain items for different shoppers. Instacart's Eversight tool enables retailers to conduct AI-driven price experiments to assess consumer responses to price changes.
The FTC's investigation into AI-driven pricing at a time of high living costs in the U.S. draws attention to the broader issue of affordability. Instacart maintains that the pricing tests conducted through Eversight are randomized and not based on fluctuating demand or individual user data. The company also stated its recent focus on encouraging price parity between online and in-store prices with its retail partners. An FTC investigation does not confirm wrongdoing, and not all probes result in legal action.