NY AG Probes Instacart Over Secret Algorithmic Pricing

New York Attorney General Letitia James is investigating Instacart for potentially violating state law concerning the disclosure of consumer data used in pricing. This inquiry stems from a recent study that revealed significant price variations for identical grocery items among different shoppers on the platform. The study highlighted an average cost difference of 7% for the same grocery list at the same store.

Instacart has asserted that its pricing experiments, including those conducted with its Eversight AI tool, were randomized and did not rely on individual consumer data. However, the company did display disclaimers on some store pages suggesting prices could vary based on personal information and randomized tests. The Attorney General stated these disclaimers might not meet New York's clarity requirements for such practices.

James emphasized her commitment to enforcing consumer protection laws and has requested Instacart's pricing agreements with retailers and brands. She also seeks an explanation of how customers were selected for these pricing experiments. This investigation underscores the ongoing scrutiny of algorithmic pricing practices in the online retail sector.