Instacart Kills AI Pricing Tests That Charged Some Customers More Than Others

Instacart has ended its AI-powered pricing tests after a study from Groundwork Collaborative, Consumer Reports and More Perfect Union revealed that the grocery delivery platform was showing different customers different prices for identical items at the same store. The company said Monday that retailers can no longer use Eversight, the AI pricing technology Instacart acquired in 2022, to run such tests.

'Now, if two families are shopping for the same items, at the same time, from the same store location on Instacart, they see the same prices -- period,' the company wrote in a blog post. The study drew attention from lawmakers; Sen. Chuck Schumer wrote to the FTC that 'consumers deserve to know when they are being placed into pricing tests,' and Reuters reported that the agency had opened an investigation. Instacart says the tests 'were never based on supply or demand, personal data, demographics, or individual shopping behavior.'

The company also reached a $60 million settlement last week over separate allegations including falsely advertising free shipping.

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