Core Viewpoint - Instacart will pay $60 million to refund consumers misled into enrolling in its subscription service, Instacart+, as per the US Federal Trade Commission's findings [1][2] Group 1: Consumer Misleading Practices - Maplebear Inc., the operator of Instacart, allegedly misled consumers by advertising their first order as "free" while imposing a mandatory grocery delivery fee [2] - The company failed to clearly disclose the terms of the Instacart+ subscription service and did not provide refunds, opting instead to offer credits for future orders [2] Group 2: Company Response - Instacart denied any wrongdoing and criticized the FTC's inquiry as fundamentally flawed, asserting the integrity and transparency of its programs [3] Group 3: Industry Context - The FTC's actions against Instacart are part of a broader initiative targeting digital subscriptions that are difficult to cancel, with similar cases against Amazon and Adobe [4] - Amazon agreed to pay $2.5 billion to resolve allegations regarding its Prime subscription's cancellation difficulties, while Adobe is contesting the FTC's claims in court [4][5] - Uber Technologies Inc. is also under scrutiny for its subscription practices, facing a lawsuit from the FTC [5]

Instacart grocery delivery bags and app shown in a kitchen as investors push shares higher after a pricing penalty setback. Key Points Instacart’s AI-enabled price tests drew backlash and regulatory attention, but the company says the tests weren’t based on personal data. The FTC’s $60 million settlement is a significant blow to Instacart's trust, yet it doesn’t directly alter Instacart’s core demand drivers or unit economics. After a brief pullback, the stock rallied to within reach of where it was be ...

Instacart said Monday that it will no longer allow retailers to use an AI-powered price testing program, two weeks after an extensive investigation showed wide discrepancies in the cost of groceries purchased through the platform. INSTACART IN FOCUS IN D.C. Instacart responded swiftly to the concerns raised in that investigation. In a lengthy blog post late last week, the company sought to clarify what sorts of pricing tests it does—and doesn't—allow on the platform by responding to four different "myths,†i ...

Core Viewpoint - Instacart has decided to suspend its price testing practice on its grocery delivery platform following customer feedback and an investigation into its pricing practices [1][2][3]. Group 1: Pricing Practices - The decision to halt price testing comes after a Consumer Reports investigation revealed that customers were seeing different prices for the same items from the same stores, which raised concerns among consumers [2][4]. - Instacart acknowledged that the tests conducted with a limited number of retail partners did not meet customer expectations, especially during a time when families are trying to maximize their grocery budgets [3][4]. - The company clarified that moving forward, customers shopping for the same items at the same time from the same store location will see the same prices, eliminating price discrepancies [3][4]. Group 2: Regulatory Context - The announcement follows a $60 million settlement with the Federal Trade Commission (FTC) regarding allegations of false advertising practices, although Instacart denied any wrongdoing [5][6]. - Consumer Reports highlighted concerns about potential "surveillance pricing," but Instacart stated that its pricing practices do not fall under this category [5].

Core Viewpoint - Instacart will stop using AI-driven pricing tests on its grocery delivery platform due to scrutiny from a study and criticism from lawmakers [1][2] Group 1: Company Actions - The company announced that retailers can no longer utilize its Eversight technology for pricing experiments, effective immediately [1] - Instacart acquired Eversight for $59 million in 2022, which allowed retailers to conduct pricing tests [2] Group 2: Customer Impact - The company acknowledged that the pricing tests led to different prices for the same item at the same store, which caused confusion among customers [2] - Instacart emphasized the importance of trust, transparency, and affordability, especially during challenging economic times for families [2] Group 3: Technology Purpose - The technology was initially intended to help retailers enhance sales and growth while providing customers with the best deals [3]

Core Viewpoint - Instacart is discontinuing its price testing strategy that displayed varying prices for groceries to different shoppers, following backlash regarding its artificial intelligence practices [1] Group 1 - The decision to end the price tests comes after criticism from users and stakeholders about the fairness and transparency of the pricing model [1] - Instacart's approach involved using artificial intelligence to determine pricing, which led to concerns over potential discrimination among customers [1] - The company aims to enhance customer trust and satisfaction by standardizing prices across its platform [1]

Core Point - Instacart has announced the immediate termination of all item price tests on its platform, ensuring that the same items will not be charged at different prices [1] Company Actions - The company will no longer implement varying prices for identical items, which indicates a shift towards a more standardized pricing strategy [1]

Core Viewpoint - Instacart is discontinuing a price-testing program that allowed customers to see different prices for the same product, following concerns about pricing transparency and trust [1][3][5]. Group 1: Price Testing Program - The price-testing program aimed to help retailers understand customer price sensitivity but resulted in nearly 75% of grocery items being offered at multiple prices during the experiment [2][4]. - Customers reported seeing varying prices for the same items, such as different prices for a dozen Lucerne eggs ranging from $3.99 to $4.79 [4]. - Instacart will no longer support any item price testing services, although retailers can still set their own prices on the platform [3][5]. Group 2: Customer Trust and Transparency - The company emphasized the importance of trust, stating that customers should not have to question the prices they see [3][7]. - Instacart's decision to end the program reflects its commitment to transparency and affordability, especially during challenging economic times for families [3][6]. Group 3: Legal and Financial Context - Instacart recently agreed to pay $60 million in customer refunds to settle allegations of deceptive practices related to advertising free deliveries and undisclosed service fees [6]. - The company denied wrongdoing but chose to settle to focus on its business operations moving forward [6].

Maplebear’s Instacart (CART) has been on shaky ground this year as competition in grocery delivery intensifies. Well-funded rivals like Amazon (AMZN), Walmart (WMT), and other delivery platforms are leveraging their scale, logistics networks, and partnerships to squeeze Instacart’s market share. At the same time, mounting business and regulatory challenges have dented investor confidence. That pressure intensified on Dec. 18, when CART shares slipped about 1.5% following reports that Instacart agreed to ...

Instacart（CART）周五早盘上涨1.6%。该公司将支付6000万美元退款并改变经营做法，以解决联邦贸 易委员会（FTC）对其误导消费者"免费配送"宣传以及未经明确同意擅自为用户注册订阅服务的指控。 来源：环球市场播报 ...