# FTC Questions Instacart After Scrutiny of Its AI Pricing Tool
The U.S. Federal Trade Commission (FTC) has launched a probe into Instacart's AI-driven pricing tool, Eversight, following reports of shoppers seeing dramatically different prices for identical groceries, prompting a sharp 10-11% drop in the company's shares.[1][2][6] This investigation, confirmed by sources familiar with the matter, highlights growing regulatory concerns over AI's role in dynamic pricing amid rising consumer complaints about fairness in grocery costs.[1][4]
FTC Launches Civil Investigative Demand into Instacart's Eversight Tool
The FTC issued a civil investigative demand to Instacart, seeking detailed information on its Eversight software, which enables retailers to test various price points using artificial intelligence.[1][2] According to two sources cited by Reuters, the scrutiny stems from a Consumer Reports investigation revealing that some shoppers encountered prices up to 23% higher for the exact same items in the same store at the same time.[1][3][5] The FTC, while adhering to its policy of not commenting on ongoing probes, expressed disturbance over the reported practices, stating it mirrors concerns shared by many Americans.[1][2]
Instacart defends Eversight as a tool for randomized price testing across item categories, not personalized pricing based on user data or behavior, and claims it helps grocers achieve 1-3% revenue growth.[1][4] The company emphasizes that retailers, not Instacart, set prices, with only 10 partners currently using the tool, and most shoppers see standard rates.[5] Recent efforts include promoting price parity between online and in-store shopping to eliminate markups.[1]
Consumer Reports Study Exposes Price Disparities Across Major Retailers
A joint investigation by Consumer Reports and the Groundwork Collaborative uncovered AI-assisted pricing experiments at chains like Costco, Kroger, Safeway, Sprouts, Albertsons, and Target, where every tested shopper encountered varied prices.[3][5] In one stark example from a Seattle Safeway, identical grocery baskets ranged from about $114 to nearly $124, potentially adding roughly $1,200 annually to a typical four-person household's expenses based on Instacart's own estimates.[5] Instacart confirmed the findings but noted it has halted experiments for Target and Costco, insisting tests follow "strict guardrails" without using personal or demographic data.[3][5]
Target clarified it has no business ties with Instacart, which scrapes public prices and adds margins, while other retailers like Safeway, Costco, and Kroger did not respond to inquiries.[2][5] Critics argue these discrepancies erode trust, especially for essentials like groceries, distinguishing them from surge pricing in rideshares or airlines.[4]
Political Pressure Mounts as Schumer Demands FTC Action
U.S. Senator Chuck Schumer amplified the issue, urging the FTC to investigate Instacart's practices in a statement blasting AI-driven "shakedown pricing" that inflates costs nationwide, including in New York City and Long Island.[3] "When a shopper fills their grocery cart... they should trust that they are being treated fairly and that prices are transparent," Schumer said, warning of predatory tactics jacking up grocery bills.[3] This political push aligns with broader FTC efforts to scrutinize data-driven pricing strategies amid economic pressures on consumers.[4]
The probe's timing, just after the Consumer Reports study, underscores intensifying oversight of AI in retail, where dynamic pricing—long used by airlines and hotels—faces backlash for food staples.[1][4] Instacart's shares plunged 10-11% in after-hours and extended trading on the news, reflecting investor jitters over potential regulatory fallout.[1][2][6]
Instacart's Defense and Broader Implications for AI Pricing
Instacart maintains its pricing tests are short-term and randomized, distinct from demand-based or user-specific models, and has shifted focus to price alignment initiatives.[1][3] While dynamic pricing can optimize supply-demand balance and profitability, experts note its sensitivity in groceries, where affordability is critical.[4] The FTC's involvement signals potential precedents for regulating AI tools in e-commerce, especially as similar investigations target other firms.[4]
Frequently Asked Questions
What is Instacart's Eversight pricing tool?
Eversight is an AI-powered software that allows select retailers on Instacart to run randomized price tests across grocery categories to measure shopper reactions and boost revenue by 1-3%.[1][5]
Why did the FTC start probing Instacart?
The FTC sent a civil investigative demand after a Consumer Reports study showed shoppers paying up to 23% more for identical items in the same store, raising fairness concerns.[1][2][5]
How much did Instacart's shares drop after the FTC news?
Instacart shares fell about 10-11% in after-hours and extended trading following reports of the FTC probe.[1][2][6]
Does Instacart set grocery prices itself?
No, Instacart states that retailers control prices on its platform, except for Target where it scrapes public prices and adds margins; Eversight merely facilitates testing.[1][2][5]
What did Senator Schumer say about Instacart's pricing?
Schumer called for FTC action, labeling the AI practices "predatory" and a "shakedown" that charges different prices for the same items, eroding consumer trust.[3]
Which retailers were involved in the price experiments?
Consumer Reports identified experiments at Costco, Kroger, Safeway, Sprouts, Albertsons, and Target, though Instacart stopped tests for Target and Costco.[5]
🔄 Updated: 12/18/2025, 2:40:47 AM
Experts say the FTC’s civil investigative demand to Instacart over its AI pricing tool, Eversight, reflects growing regulatory unease about opaque dynamic pricing that can make identical groceries up to 23% more expensive for some shoppers, a figure cited in reporting on the probe[1]. Industry analysts and academics quoted in coverage argue the issue is not the use of AI per se but *transparency and consumer harm*—Harvard Business School experts note dynamic pricing is common across platforms, while consumer advocates warn that algorithmic price testing on essentials like food risks disproportionate impact on low-income shoppers[1].
🔄 Updated: 12/18/2025, 2:50:48 AM
**NEWS UPDATE: Consumer Outrage Mounts Over Instacart AI Pricing Disparities**
Consumers and advocates expressed fury after a Consumer Reports investigation revealed shoppers faced up to **23% higher prices** for identical groceries at chains like Costco, Kroger, and Safeway, with one Seattle Safeway basket varying from **$114 to $124**—potentially costing families **$1,200 extra yearly**[6][1]. Sen. Chuck Schumer blasted the practice, stating, “companies like Instacart are using artificial intelligence to rip off consumers by charging different shoppers different prices for the same exact items,” and demanded FTC action to halt “this shakedown pricing” amid New York families' struggles[4]. The FTC echoed publi
🔄 Updated: 12/18/2025, 3:01:05 AM
U.S. regulators’ civil investigative demand to Instacart over its Eversight AI pricing tool has triggered international scrutiny, with Instacart shares tumbling about 10–11% in after‑hours trading as markets in the U.S., U.K. and Europe reacted to the news[1][5]. Consumer groups and lawmakers abroad cited Consumer Reports’ finding that some shoppers paid up to 23% more for identical groceries — prompting calls for cross‑border inquiries into algorithmic price discrimination and sparking debate in the EU and U.K. about extending digital pricing transparency rules to cover AI-driven experiments[1][6].
🔄 Updated: 12/18/2025, 3:10:48 AM
The FTC has issued a civil investigative demand to Instacart seeking documents and data about its Eversight AI pricing tool after a Consumer Reports study found shoppers were charged *as much as 23% more* for identical groceries in the same store, and Instacart shares fell about *10%* in after‑hours trading on the news[1][5]. Technically, regulators appear focused on whether Eversight’s randomized price‑testing and AI-driven experiments—which Instacart says drove *1–3%* revenue gains for participating grocers—constitute nontransparent segmentation or discriminatory dynamic pricing that could violate consumer‑protection or competition laws
🔄 Updated: 12/18/2025, 3:20:50 AM
The FTC’s civil investigative demand to Instacart over its Eversight AI pricing tool has injected immediate uncertainty into the grocery-delivery competitive landscape, sending Instacart shares down roughly 10–11% in after-hours trading as rivals and retailers reassess pricing partnerships[2][6]. Consumer Reports alleges some shoppers were charged up to 23% more for identical items, a finding that could accelerate moves by chains (Costco, Kroger, Safeway, Albertsons, Sprouts and others were named in reporting) to limit or end use of Instacart’s testing tools and push for direct-to-consumer or own-platform solutions to reclaim price control
🔄 Updated: 12/18/2025, 3:30:55 AM
**Instacart Shares Plunge 10% in After-Hours Trading Amid FTC Probe into AI Pricing Tool.** Reuters reports that the U.S. Federal Trade Commission issued a civil investigative demand to Instacart over its Eversight AI software, following a study revealing shoppers faced up to 23% higher prices for identical groceries in the same store.[1][2] The scrutiny triggered an immediate market reaction, with Instacart's stock dropping about 10% after hours on December 17, reflecting investor concerns over potential regulatory fallout.[1][2]
🔄 Updated: 12/18/2025, 3:40:48 AM
FTC scrutiny of Instacart’s AI pricing tool has already altered the competitive landscape: Instacart shares fell roughly 10–11% after Reuters reported the agency issued a civil investigative demand about the Eversight tool, prompting rival grocery platforms and retailers to emphasize price transparency to win wary customers[1][5]. Consumer Reports and Sen. Chuck Schumer highlighted price disparities “up to 23%” on identical items, a figure retailers and competitors are using to argue for stricter controls or to promote alternative platforms that pledge static, uniform pricing[1][2][4].
🔄 Updated: 12/18/2025, 3:50:50 AM
**NEWS UPDATE: Public Outrage Grows Over Instacart's AI Pricing Disparities Amid FTC Probe**
Consumer Reports' investigation revealed shoppers faced up to **23% higher prices** for identical groceries at chains like Costco, Kroger, and Safeway, with one Seattle Safeway basket varying from $114 to $124—potentially costing families **$1,200 more yearly**.[1][3][4][6] Sen. Chuck Schumer condemned the practice, stating, “companies like Instacart are using artificial intelligence to rip off consumers by charging different shoppers different prices for the same exact items,” and demanded FTC action to stop this “predatory” pricing.[4] The FTC echoed public dismay, noting it is “
🔄 Updated: 12/18/2025, 4:00:51 AM
The FTC’s civil investigative demand to Instacart has put rivals and retailers on alert, potentially reshaping the grocery-delivery competitive landscape as investors repriced risk — Instacart shares fell about 10–11% in after-hours trading following the probe report[1][5]. Consumer Reports’ finding that identical baskets sometimes cost up to 23% more for some shoppers has spurred calls from Sen. Chuck Schumer and could accelerate rivals’ marketing of “transparent pricing” (Instacart says only 10 retailers used its testing tools and that most shoppers still see standard prices), forcing competitors to highlight price guarantees or withdraw similar AI price-testing features[4
🔄 Updated: 12/18/2025, 4:10:50 AM
Breaking: The U.S. Federal Trade Commission has issued a civil investigative demand to Instacart as part of a probe into its AI pricing tool, Eversight, after a Consumer Reports study found shoppers were charged up to 23% more for identical grocery items, sources told Reuters and TechCrunch[1][3]. Instacart shares plunged about 10–11% in after-hours trading following the news, and the FTC said it was “disturbed by what we have read in the press” while Sen. Chuck Schumer urged the agency to take action over “predatory” AI pricing practices[1][4].
🔄 Updated: 12/18/2025, 4:20:48 AM
FTC scrutiny of Instacart’s AI pricing tool has drawn sharp industry and expert criticism, with Consumer Reports finding some shoppers were charged up to 23% more for identical groceries—an outcome Sen. Chuck Schumer called “predatory” and urged the FTC to investigate further[5][4]. Experts and commentators argue the probe raises normative and antitrust concerns about opaque, randomized price experiments: Harvard Business School–style defenses of dynamic pricing as efficiency tools are being weighed against consumer-protection warnings that such AI-driven tests can “jack up grocery costs” for vulnerable households and may warrant regulatory limits, a shift underscored by the FTC’s civil investigative demand to
🔄 Updated: 12/18/2025, 4:30:50 AM
**Instacart Stock Update:** Instacart shares plunged approximately **10%** in after-hours trading on December 17 following reports that the FTC issued a civil investigative demand over its AI-driven Eversight pricing tool, which has faced scrutiny for showing shoppers price differences of up to **23%** on identical groceries.[1][2][5] Some reports noted a sharper drop of **11%** in extended trading, reflecting investor concerns amid the probe into randomized pricing tests.[5] No further market movements were reported as of late Wednesday.[1][2]
🔄 Updated: 12/18/2025, 4:40:49 AM
The Federal Trade Commission has opened a probe into Instacart, issuing a civil investigative demand seeking records and information about its AI-driven Eversight pricing tool, sources told Reuters and other outlets[2][4]. Senators including Chuck Schumer have urged FTC action after a Consumer Reports study found price spreads “up to 23 percent” for identical items, and the FTC said it was “disturbed by what we have read in the press about Instacart’s alleged pricing practices,” while declining to confirm specifics of any investigation[1][3].
🔄 Updated: 12/18/2025, 4:50:49 AM
FTC scrutiny of Instacart’s AI pricing tool has roiled the grocery-delivery competitive landscape, with Instacart shares sliding roughly 10–11% in after‑hours trading following reports the agency issued a civil investigative demand about Eversight[1][6]. Rival retailers and platforms may accelerate moves toward price transparency and parity—Consumer Reports found price gaps up to 23% for identical baskets, and Instacart itself says grocers using Eversight see 1–3% revenue lifts—pressuring competitors to either adopt similar AI tools or differentiate on fixed, in‑store‑matched pricing to regain consumer trust[1][5][2
🔄 Updated: 12/18/2025, 5:01:02 AM
Instacart shares tumbled sharply after reports the FTC has issued a civil investigative demand over its AI pricing tool, falling about 10–11% in extended trading Wednesday following Reuters' disclosure, with multiple outlets reporting a roughly 10% drop and some citing an 11% plunge in after-hours trades[1][6]. Market analysts said the probe amplified investor fears about regulatory risk and revenue exposure from Eversight tests that studies found produced price disparities up to 23% for identical items, a statistic which critics and lawmakers have repeatedly cited in public comments[1][5].