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Instacart Ends Price Testing Following Consumer Reports Study
PYMNTS.com· 2025-12-22 20:36
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].
Instacart ends AI-driven pricing tests that drove up costs for some shoppers
CNBC· 2025-12-22 14:46
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]