Instacart will discontinue its item price-testing program due to significant backlash from customers. This decision follows a detailed investigation revealing that some users were charged up to 25% more than others for identical products purchased simultaneously.
The report, released earlier this month by Consumer Reports, Groundwork Collaborative, and More Perfect Union, highlighted price discrepancies experienced by 437 shoppers across various cities. On average, shoppers encountered a 13% difference in prices, with some experiencing gaps reaching 23%.
In response to consumer concerns, Instacart announced that retailers will no longer utilize its Eversight pricing tool, which the company has described as an “AI-powered pricing and promotions platform.” The press release emphasized that the tests undermined customer trust, stating, “At a time when families are working exceptionally hard to stretch every grocery dollar, those tests raised concerns.”
This change coincides with reports of a Federal Trade Commission investigation into Instacart’s pricing practices and follows a separate settlement requiring the company to provide $60 million in refunds related to other FTC allegations.