Instacart halts AI pricing tests amid FTC investigation
Originally Published 20 days ago — by Los Angeles Times
Instacart has ceased using AI to experiment with variable pricing for the same items after reports revealed customers were paying different prices for identical products, with some experiencing up to 23% higher costs. The company acknowledged the issue and stated that shoppers will now see consistent prices for the same items within the same store, although prices may still vary across different stores. The pricing experiments, part of a revenue-maximization strategy involving AI, were criticized for potentially costing consumers up to $1,200 annually, leading Instacart to halt the practice.
