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Instacart Under FTC Scrutiny for AI Pricing
18 Dec
Summary
- FTC demands answers on Instacart's AI pricing tool, Eversight.
- Shoppers face up to 23% higher grocery prices due to dynamic pricing.
- Dynamic pricing in groceries raises consumer affordability concerns.
The Federal Trade Commission (FTC) has issued a civil investigative demand to Instacart, probing its AI-driven pricing tool named Eversight. This action stems from reports that shoppers encounter substantially varied prices for identical grocery items across different transactions, with discrepancies reaching as high as 23%.
Instacart asserts that these price variations are the result of randomized testing and not tied to customer browsing history. However, the FTC's interest highlights growing concerns about dynamic pricing strategies, particularly when applied to essential goods like groceries, during a period of widespread economic pressure.
While dynamic pricing is a well-established practice in sectors like airlines and ride-sharing, its use for food staples is attracting regulatory attention. The FTC's investigation, though not indicative of proven wrongdoing, reflects a broader trend of examining data-driven pricing that could impact consumer budgets.
