US EditionInstacart Ends a Program Where Users Could See Different Prices for the Same Item at the Same Store
Instacart will refund $60 million to customers and cease AI-driven price testing after FTC accused it of deceptive delivery and subscription practices.
- On Monday, Instacart said it is ending a program where some customers saw different prices for the same product from the same store, effective immediately, but declined to disclose how many were affected.
- The price-testing program, introduced for retailers in 2023, aimed to help grocers learn customer price tolerance, as Consumer Reports and advocacy groups found nearly three out of four items shown at multiple prices.
- An experiment showed one of five prices for a dozen Lucerne eggs and a 23% Wheat Thins variation from data of more than 400 volunteers, while Instacart denied using 'dynamic pricing' or 'surveillance pricing'.
- The settlement requires Instacart to pay $60 million in consumer refunds and to stop deceptive practices, including misrepresenting subscription terms, the Federal Trade Commission said Thursday.
- Regulators remain focused: the FTC is monitoring online delivery pricing after Instacart said it would halt Eversight technology and item price testing services, effective immediately.
116 Articles
116 Articles
Instacart scraps AI pricing tests after backlash over grocery price swings
Instacart said Monday that it will no longer allow retailers to use an AI-powered price testing program. This comes two weeks after an extensive investigation showed wide discrepancies in the cost of groceries purchased through the platform. Effective immediately, retailers will no longer be able to use Eversight technology to run price tests on Instacart, the San Francisco-based company said in a blog post. Previously, a small number of retail …
Kron 4 News
Instacart to pay $60 million in customer refunds over allegations of ‘deceptive tactics’
(NEXSTAR) – Grocery delivery company Instacart has agreed to pay $60 million in refunds to customers who were affected by its alleged “deceptive tactics” to obscure delivery and membership fees, according to the U.S. Federal Trade Commission. The FTC announced the settlement last week in a press release alleging that Instacart “engaged in numerous unlawful tactics that harmed shoppers and raised the cost of grocery shopping for Americans.” Speci…
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