FTC Investigates Instacart’s AI Pricing Practices Amid Consumer Concerns
The Federal Trade Commission (FTC) has initiated an investigation into Instacart’s use of artificial intelligence (AI) in its pricing strategies, following reports of significant price discrepancies for identical grocery items among different customers. This scrutiny centers on Instacart’s Eversight tool, an AI-driven software designed to assist retailers in experimenting with various pricing models.
Background on Eversight and Pricing Disparities
Instacart’s Eversight tool enables retailers to conduct randomized pricing tests to assess consumer responses to different price points. While such practices are common in the retail industry, recent studies have highlighted notable inconsistencies in pricing on Instacart’s platform. A collaborative investigation by Consumer Reports, Groundwork Collaborative, and More Perfect Union involved 437 shoppers across four cities purchasing identical items from the same stores via Instacart. The findings revealed that nearly 75% of the products displayed varying prices, with some items showing price differences of up to 23%. On average, the total cost for the same basket of goods varied by approximately 7%, potentially leading to an annual cost difference of about $1,200 for a typical household. ([consumerreports.org](https://www.consumerreports.org/money/questionable-business-practices/instacart-ai-pricing-experiment-inflating-grocery-bills-a1142182490/?utm_source=openai))
FTC’s Response and Broader Implications
In response to these findings, the FTC has issued a civil investigative demand to Instacart, seeking detailed information about the Eversight tool and its impact on consumer pricing. The agency expressed concern over reports of Instacart’s pricing practices, emphasizing the importance of transparency and fairness in digital marketplaces. ([reuters.com](https://www.reuters.com/legal/litigation/ftc-investigating-instacarts-ai-pricing-tool-source-says-2025-12-17/?utm_source=openai))
This investigation is part of a broader examination of AI and data-driven pricing strategies by the FTC. The agency has previously scrutinized companies that utilize technology to set prices based on consumer data, including factors like past purchases and online behavior. Such practices have raised questions about fairness and the potential for price discrimination. ([reuters.com](https://www.reuters.com/legal/litigation/ftc-investigating-instacarts-ai-pricing-tool-source-says-2025-12-17/?utm_source=openai))
Instacart’s Position and Industry Practices
Instacart maintains that its pricing tests are randomized and not based on individual consumer data. The company asserts that these experiments are intended to help retailers understand consumer behavior and align online prices with in-store pricing. Instacart also emphasizes that it does not set retail prices, except for certain adjustments on scraped Target pricing, and has been working with partners to encourage price parity between online and in-store offerings. ([reuters.com](https://www.reuters.com/legal/litigation/ftc-investigating-instacarts-ai-pricing-tool-source-says-2025-12-17/?utm_source=openai))
Dynamic pricing, where prices fluctuate based on various factors, is not uncommon in the retail industry. Airlines, hotels, and ride-sharing services often employ such strategies to balance supply and demand and maximize profitability. However, applying these tactics to essential goods like groceries raises ethical considerations, particularly regarding transparency and consumer consent. ([techcrunch.com](https://techcrunch.com/2025/12/17/instacarts-ai-driven-pricing-tool-attracted-attention-now-the-ftc-has-questions/?utm_source=openai))
Consumer Advocacy and Legislative Actions
Consumer advocacy groups have expressed concern over Instacart’s pricing practices. Consumer Reports has called for an investigation into the use of AI in grocery pricing, urging the FTC and state attorneys general to hold companies accountable for any unfair or deceptive practices. ([action.consumerreports.org](https://action.consumerreports.org/nb-20251209-mtpr-instacart?utm_source=openai))
Legislative bodies are also taking note. Some state lawmakers have sought to restrict pricing practices they deem unfair, particularly those involving AI and personal data. The FTC’s ongoing investigation into Instacart’s Eversight tool reflects a growing concern over the use of technology in setting prices for essential goods and the need for regulatory oversight to ensure consumer protection. ([reuters.com](https://www.reuters.com/legal/litigation/ftc-investigating-instacarts-ai-pricing-tool-source-says-2025-12-17/?utm_source=openai))
Conclusion
The FTC’s investigation into Instacart’s AI-driven pricing practices underscores the complexities and ethical considerations of using technology in consumer pricing. As digital marketplaces continue to evolve, ensuring transparency and fairness in pricing strategies remains paramount to maintaining consumer trust and regulatory compliance.
