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NW Washington | I think Insta-Cart has already taken corrective action to cover its tracks and prevent future complaints. Here is a little AI on this subject.
Instacart is facing intense scrutiny for using AI-powered "price testing" tools that charged different customers varying prices (up to 23% higher) for the same items. The company is also paying $60 million to settle FTC allegations of deceptive subscription sign-ups and hidden fees, prompting a halt to these practices.
Key Aspects of the Instacart Pricing Scandal:
AI Price Testing Investigation: A December 2025 report from Consumer Reports and advocacy groups found that nearly 75% of items tested showed different prices for identical products from the same store, resulting in an average price variation of 7% per basket.
"Surveillance Pricing": The technology, linked to Instacart's 2022 acquisition of Eversight, was designed to gauge customer price sensitivity, leading to some shoppers paying up to 23% more for the same items.
Company Response: Following public outrage and an FTC investigation, Instacart announced it would end all item price testing services.
FTC Settlement ($60 Million): In a separate action, Instacart agreed to pay $60 million to settle Federal Trade Commission (FTC) allegations of deceptive practices, specifically for charging for Instacart+ subscriptions without consent and misleading consumers about delivery fees.
Impact on Consumers: The price disparities could lead to over $1,000 in extra annual costs for some households.
While Instacart previously stated that retailers set their own prices, this specific AI-driven testing allowed for personalized price variations rather than standard geographic differences. | |
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Consumer Reports report on Instacart's AI-enabled pricing
