Instacart shifts strategy as it halts contentious pricing experiments impacting shoppers

Instacart shifts strategy as it halts contentious pricing experiments impacting shoppers

Instacart halts item price testing after FTC scrutiny, ending a practice that varied prices among users. This shift may impact pricing transparency on the platform.

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Instacart has decided to cease all item price testing on its platform immediately. This decision follows a recent study highlighting discrepancies in pricing that affected certain customers differently and the Federal Trade Commission's announcement of an investigation into the app.

An Instacart representative confirmed to Engadget that retailers will no longer utilize Eversight technology for price testing. The spokesperson emphasized that the pricing experiments were not a result of dynamic pricing nor based on personal data from customers.

Previously, Instacart characterized these pricing changes as short-term, randomized A/B testing, which it claimed is a standard practice in the grocery sector aimed at reducing prices. The company reiterated that while its retail partners set prices, they will continue to vary by location, similar to traditional grocery stores.

Going forward, Instacart will not provide support for any price testing services, focusing instead on allowing retailers to maintain their pricing strategies independently.

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