The U.S. Federal Trade Commission (FTC) is investigating Instacart over its AI-driven pricing tool, which has caused prices for identical items to vary significantly among different consumers. Following the report, Instacart’s stock dropped 10% in after-hours trading but later rebounded. The FTC issued a civil investigative demand for further information regarding the pricing practices, expressing concern over potential consumer impacts. A study by advocacy groups revealed discrepancies of up to 23% in prices shown to different shoppers for the same grocery list. Instacart claims its Eversight AI tool helps retailers optimize pricing, resulting in a 1-3% increase in revenue. However, U.S. Senator Chuck Schumer emphasized the need for transparency, insisting consumers should be informed when subjected to such pricing tests. This investigation raises important questions about consumer rights and pricing strategies in the evolving AI retail landscape.
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