FTC probes Instacart over AI pricing tool as study finds price variation for shoppers

The U.S. Federal Trade Commission has opened a civil investigation into Instacart’s AI-driven pricing tool, Eversight, two people familiar with the matter told Reuters. The agency has issued a civil investigative demand seeking information about how the tool is used by retailers on Instacart to set prices. Instacart’s shares fell about 10% in after-hours trading following the disclosure, underscoring the potential reputational and financial impact of regulatory scrutiny on the company. Reuters noted that the FTC’s step represents a broader push by the agency to scrutinize how technology influences price setting in consumer markets.

Instacart describes Eversight as a tool that lets retailers on the platform experiment with different prices across categories of items to gauge shopper reactions. The company said in a blog post last week that pricing tests conducted through Eversight were randomized and not based on fluctuating demand or individual consumer data. Instacart also highlighted that sessions of price testing historically yield modest revenue gains, estimating a 1% to 3% lift in revenue for retailers using the tool. The company added that this year it has prioritized price parity—reducing markups and aligning online prices with in-store prices for both online and in-person shoppers.

The FTC probe comes as consumer cost pressures in the United States have become a political and policy focal point. The agency’s inquiry into Eversight coincides with ongoing debates about whether algorithmic pricing can lead to unequal treatment of shoppers and whether transparency around such tools is needed to protect consumers. The opening of an investigation does not itself establish wrongdoing, and many FTC inquiries do not result in lawsuits. The agency has emphasized that it will not comment on investigations, while acknowledging public concern over Instacart’s pricing practices.

A separate study conducted by Groundwork Collaborative, Consumer Reports, and More Perfect Union found meaningful price variation for the same items across shoppers. In a sample of 437 shoppers viewing Instacart prices in four cities, the total cost for the same grocery list at the same store averaged about 7% higher for some shoppers. In some cases, the price gap reached as high as 23% for identical items bought at the same time. The study authors described the discrepancy as “the same product, different price,” highlighting potential implications for consumer affordability and trust in online shopping platforms that use AI-driven pricing tools.

Instacart has argued that the pricing tests under Eversight are randomized and designed to measure general consumer response, not to tailor prices to individuals. The company has stressed its broader goal of price parity, noting that it is working with retail partners to remove markups and align online prices with in-store prices. The FTC’s inquiry signals heightened attention to how automated pricing systems may affect shoppers across different markets and income levels, even as the technology enables retailers to calibrate demand and improve revenue.

As regulators weigh the balance between innovation and consumer protection, observers say the outcome of the investigation could influence how AI-driven pricing tools are designed, disclosed, and monitored in the retail sector. Analysts caution that a probe may simply lead to settlement terms or new regulatory expectations rather than a broad regulatory overhaul, but it could also prompt additional scrutiny of pricing practices across e-commerce platforms. In the meantime, Instacart has reiterated its commitment to transparent pricing and parity across channels, while continuing to work with retailers to test and refine pricing strategies through Eversight.