Instacart, FTC
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Grocery delivery firm Instacart will pay $60 million to refund consumers who were deceived into enrolling in the company’s subscription service, Instacart+, the US Federal Trade Commission said.
Instacart has agreed to refund $60 million to customers to settle allegations that the grocery shopping service engaged in deceptive marketing and billing practices, the Federal Trade Commission said Thursday.
A new investigation by Consumer Reports, in collaboration with Groundwork Collaborative and More Perfect Union, suggests that Instacart’s use of artificial intelligence in pricing experiments may have resulted in shoppers paying different amounts for the same groceries.
A recent study published by Consumer Reports alleges that Instacart has been conducting AI-led dynamic pricing experiments that, in some cases, are drastically inflating the cost of certain products.
Senator Chuck Schumer (D-New York) is accusing Instacart of ripping off consumers by charging different prices for the same product to different customers. “This is jacking up grocery costs across New York City,
Consumer advocate Lindsay Owens urges state AGs to investigate Instacart after a report finds price gaps of up to 23% for identical grocery items.