The U.S. Federal Trade Commission issued a civil investigative demand to Instacart regarding its AI-powered pricing tool, Eversight, after a study showed shoppers paying up to 23% more for identical groceries, including organic granola, from the same stores.
Reuters reported the FTC’s action seeks explanations for these price differences observed on the grocery delivery platform. The study highlighted substantial variations in costs for the same products purchased through Instacart from identical retailers.
Instacart responded that its price tests operate on a randomized basis. The company clarified these tests do not rely on customers’ browsing history or any targeted algorithms to set prices for individual users.
Eversight enables dynamic pricing, a practice Instacart employs to adjust costs. Airlines apply dynamic pricing to vary ticket fares. Hotels adjust room rates dynamically based on occupancy. Ride-share services, such as Uber, implement surge pricing during peak demand periods. Companies use this approach to balance supply and demand while maximizing profitability.
Critics differentiate dynamic pricing applications. They view its use for essential goods like groceries as more problematic compared to discretionary services such as rides from a bar.
The FTC has conducted prior investigations into data-driven pricing strategies at other companies. Its current inquiry into Instacart’s Eversight tool reflects ongoing regulatory scrutiny of AI-driven price testing practices.
