Instacart, FTC
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The FTC says the company failed to disclose important details about the paid Instacart+, subscription program, which offers free delivery but still includes some service fees.
The U.S. Federal Trade Commission is probing Instacart , two sources familiar with the matter told Reuters, as the retail platform faces criticism over its artificial intelligence-driven pricing tool.
A recent investigation that found Instacart is charging some customers nearly 25% more for the same products from the same store got a lot of people’s attention, including the Federal Trade Commission. According to a report from Reuters, the agency has opened a probe into Instacart’s pricing practices.
In an economy where everyone's feeling squeezed, AI-driven price testing of kitchen essentials was bound to attract attention.
The FTC has sent Instacart a civil investigative demand seeking more information about its AI pricing tool. "Like so many Americans, we are disturbed by what we have read in the press about Instacart's alleged pricing practices," the agency tells Reuters.
We are disturbed by what we have read in the press about Instacart’s alleged pricing practices,” the FTC said in a statement.
A recent study published by Consumer Reports (CR) alleges that Instacart has been conducting AI-led dynamic pricing experiments that, in some cases, are drastically inflating the cost of certain products.