Instacart Scraps AI Pricing Tests That Made Some Products More Expensive
Instacart is ending its AI-powered pricing tests, which led some users to see higher prices on certain products than others.
“Now, if two families are shopping for the same items, at the same time, from the same store location on Instacart, they see the same prices — period,” Instacart writes in a blog post on Monday.
Study Reveals Instacart’s Pricing Tests Resulted in Higher Prices for Some Customers
A study found that Instacart’s pricing tests resulted in higher prices for some customers.
The report drew attention from lawmakers, including Sen. Chuck Schumer (D-NY), who said in a letter to the Federal Trade Commission that “consumers deserve to know when they are being placed into pricing tests.”
Instacart Reaches $60 Million Settlement with the FTC Over Deceptive Tactics
Instacart reached a $60 million settlement with the agency over separate allegations that it engaged in deceptive tactics, including falsely advertising free shipping.
“We’ve listened carefully to feedback from our customers. And we understand that the tests we ran with a small number of retail partners that resulted in different prices for the same item at the same store missed the mark for some customers,” Instacart says.
Instacart’s Decision to End AI Pricing Tests
Instacart says it will no longer allow retailers to use the AI-powered Eversight technology it acquired in 2022 to run pricing tests.
Though retailers “may choose to vary the price of items on a store-by-store basis,” Instacart adds that the pricing tests “were never based on supply or demand, personal data, demographics, or individual shopping behavior.”
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