The U.S. Federal Trade Commission has issued a civil investigative demand to Instacart seeking details about its AI-powered pricing tool, Eversight, after reports showed shoppers were paying different prices for the same groceries from the same stores, according to Reuters. The request signals early regulatory scrutiny into how the grocery delivery platform tests prices and why some customers see higher costs than others for identical items.
Price Differences Trigger Regulatory Attention
The inquiry follows a study that found price variations of up to 23% for the same grocery products purchased through Instacart. The findings indicated that shoppers buying identical items from the same retailers were sometimes charged notably different amounts.
Instacart said the pricing differences resulted from randomized price tests rather than an algorithm designed to adjust prices based on individual behavior, browsing history, or personal data. The company maintains that the tests were not targeted at specific users.
Context Around Dynamic Pricing Practices
Dynamic pricing is commonly used across digital platforms and is often cited by academic institutions, including Harvard Business School, as a way for companies to remain competitive. Airlines, hotels, and ride-hailing services regularly adjust prices to reflect demand and availability.
However, the practice has drawn increased attention when applied to groceries. Food purchases are considered essential, and price fluctuations in this category have raised concerns during a period when consumers are already facing higher living costs.
FTC Interest Does Not Signal Findings
The FTC’s request does not indicate that the agency has concluded any laws were broken. The commission has previously examined data-driven pricing strategies used by other companies, and the current inquiry reflects a broader interest in how algorithmic tools are applied to consumer pricing.
Reuters reported that the civil investigative demand represents an early step in the regulatory process, allowing the agency to gather information before determining whether further action is warranted.
Instacart Responds To Pricing Concerns
Instacart said recent reporting has misunderstood how pricing functions on its platform. In a statement to TechCrunch, a company spokesperson said retail partners, not Instacart, control pricing strategies and work with the platform to keep online and in-store prices aligned where possible.
The spokesperson also said the price tests were not dynamic pricing or surveillance pricing. According to the company, prices on Instacart do not change in real time, are not driven by supply or demand, and are not based on personal, demographic, or user-level behavioral data.
Instacart described the tests as randomized A/B experiments, comparing pricing approaches in a manner similar to how retailers have historically tested prices across different physical store locations.
Featured image credits: Peak Outsourcing
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