US EditionInstacart Ends a Program Where Users Saw Different Prices for the Same Item
Instacart found price gaps averaging 13% and up to 23% in a September experiment and decided to end AI-driven price testing after customer backlash and regulatory scrutiny.
- On Monday, Instacart announced it has stopped all item price testing effective immediately, saying retailers will no longer run tests via Eversight on its grocery delivery and pick-up platform.
- Consumer groups' investigative report earlier this month ignited public backlash after revealing AI pricing tests caused price gaps up to 23%, pressuring Instacart to end the practice.
- The September experiment found an average 13% price gap, with investigators documenting up to 23% and a Washington, DC Safeway charging $3.99 to $4.79 for the same eggs.
- The FTC's scrutiny follows Instacart's prior agreement to issue $60 million in refunds, and the company acknowledged in a Monday blog post that the tests `missed the mark`.
- Eversight, acquired in 2022, remains visible on Instacart even as tests end, raising broader algorithmic pricing concerns as families stretch grocery budgets and regulators watch closely.
38 Articles
38 Articles
Instacart ends controversial AI pricing experiments after consumer backlash and FTC scrutiny - Tech Startups
Instacart said Monday it is ending its use of artificial intelligence-driven pricing experiments, drawing a clear line under a practice that had triggered consumer frustration, political criticism, and federal attention. The company confirmed that retailers will no longer be able […] The post Instacart ends controversial AI pricing experiments after consumer backlash and FTC scrutiny first appeared on Tech Startups.
Roanoke Times
Instacart ends a program where users saw different prices for the same item
NEW YORK — Instacart said Monday that it ended a program where some customers saw different prices for the same product ordered at the same time from the same store when using the delivery company's service.
SF-Based Instacart Dumps Its ‘AI Price-Adjusting’ Tool That Charged Some Customers 23% More for the Same Items
After a report that found Instacart was using an AI tool that charged some customers as much as 23% more for the exact same items, the shopping platform now says they’re abandoning that tool following some serious blowback. It was a pretty big online shopping scandal earlier this month — and came about two weeks before Christmas — when an independent investigation found that SF-based delivery platform Instacart was using an AI “pricing test” al…
After checking that the price difference generated a 23% increase, the platform will suspend AI tools on orders
Coverage Details
Bias Distribution
- 70% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
