Why is New York AG investigating Instacart?

The New York Attorney General is investigating Instacart for potentially violating state law regarding the disclosure of how consumer data is used for algorithmic pricing.

Did Instacart charge different prices for the same groceries?

Yes, a study by Consumer Reports and other nonprofits found that Instacart displayed different prices for identical groceries, leading to an average 7% cost difference for shoppers.

What did Instacart say about its pricing experiments?

Instacart stated that its price experiments were randomized, not based on personal data, and have since been stopped. They did use disclaimers about potential price variations.

Home / Business and Economy / NY AG Probes Instacart Over Secret Algorithmic Pricing

NY AG Probes Instacart Over Secret Algorithmic Pricing

9 Jan

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Summary

New York AG demands Instacart data on pricing law compliance.
Instacart showed different prices for same groceries, study found.
Company stated price tests were randomized, not personal data based.

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.