Particle.news
Download on the App Store

Instacart Halts AI Price Tests After Outcry and FTC Scrutiny

An independent study found identical items carried varying prices for different shoppers, prompting the company to vow an end to item-level experiments.

Overview

  • Effective immediately, retailers can no longer run item price tests on Instacart, and Eversight-powered experiments are disabled on the platform.
  • A study by Consumer Reports, Groundwork Collaborative and More Perfect Union reported that 74% of items appeared at multiple prices, with up to 23% swings and roughly a 7% average basket difference.
  • Instacart says previous trials were short-term randomized A/B tests, not dynamic or surveillance pricing, and did not use personal, demographic or behavioral data.
  • The Federal Trade Commission has questioned Instacart about its Eversight pricing tool, and regulatory and legislative scrutiny of algorithmic pricing continues.
  • In a separate case last week, Instacart agreed to $60 million in customer refunds to resolve FTC allegations over deceptive fee and delivery claims.