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Instacart shares plunge 11% on report that FTC is probing company over AI pricing tool
The FTC probes Instacart’s AI tool after a study found price differences up to 23% for identical groceries, raising questions about fairness in digital pricing.
- The FTC has issued a civil investigative demand to Instacart probing its AI pricing tool Eversight, Reuters reported December 17, 2025.
- A study found shoppers sometimes paid up to 23% more for identical groceries, with an average 7% cost difference across 437 shoppers in four cities, Groundwork Collaborative and others reported.
- The company notes Eversight allows retailers on Instacart to run AI price tests, which studies found to boost grocers' revenue by 1-3%.
- The agency cautioned that Instacart shares fell about 10% in after-hours trading, while the FTC said it was `disturbed by what we have read in the press about Instacart’s alleged pricing practices`.
- Harvard Business School notes dynamic pricing is common on platforms like airlines, hotels and Uber, but policy and regulatory observers say AI-driven price testing of essentials raises concerns amid consumers facing high cost of living.
Insights by Ground AI
23 Articles
23 Articles
Instacart AI Pricing Could Trigger Backlash - The Food Institute
An experiment on Instacart allowing retailers to use AI to set prices could backfire, leading consumers to abandon the platform in favor of less expensive options, experts told The Food Institute. The Federal Trade Commission has opened an investigation into Instacart AI pricing practices following an investigation by Groundwork Collaborative, Consumer Reports and More Perfect Union that found the practice added $1,200 in annual costs for consum…
Coverage Details
Total News Sources23
Leaning Left2Leaning Right3Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
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