Home / Business and Economy / Instacart's AI Under FTC Probe for Price Discrimination
Instacart's AI Under FTC Probe for Price Discrimination
18 Dec
Summary
- FTC is investigating Instacart's AI pricing tool, Eversight.
- Customers faced varying prices for the same items, averaging 13% difference.
- Senator Schumer urged the FTC to mandate prominent on-screen price labels.
The Federal Trade Commission has launched an investigation into Instacart's artificial intelligence pricing tool, Eversight, after discovering it presented varying prices for identical items. This AI technology, acquired by Instacart in 2022, is designed to help brands optimize pricing but has drawn scrutiny for its impact on consumers.
A recent study highlighted significant price disparities, with one example showing a dozen eggs priced between $3.99 and $4.79. Across examined products, the average price fluctuation reached 13%, potentially amounting to an additional $1,200 in annual costs for an average family of four.
Instacart has stated the pricing strategy was a limited experiment with 10 partners to understand consumer needs. However, Senator Chuck Schumer has urged the FTC to require prominent on-screen labels, ensuring consumers are aware when they are part of such pricing tests. The FTC expressed concern over Instacart's alleged pricing practices.
