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Instacart Ends AI Pricing Tests Amidst Consumer Outcry
22 Dec
Summary
- Instacart has stopped AI-driven price tests for certain products.
- Tests showed different prices for the same items at the same store.
- The company faced scrutiny from lawmakers and the FTC.
Instacart has announced the discontinuation of its AI-powered pricing tests, a program that previously presented different prices for identical grocery items to various customers shopping at the same store. The company confirmed that consumers will now consistently see the same prices for the same items when shopping from the same store at the same time.
This policy shift comes in the wake of a study by Groundwork Collaborative, Consumer Reports, and More Perfect Union, which brought the dynamic pricing practice to light. Lawmakers, including Senator Chuck Schumer, raised concerns with the Federal Trade Commission (FTC), and reports indicated the FTC had initiated an investigation into Instacart's AI pricing methods.
Instacart clarified that while retailers may still adjust prices on a store-by-store basis, the use of Eversight technology for dynamic pricing tests has ceased. The company emphasized that these tests were never influenced by factors like supply, demand, personal data, or individual shopping habits. This change follows a recent $60 million settlement with the FTC over unrelated deceptive advertising claims.
