Following Groundwork’s Bombshell Report, FTC Opens Investigation Into Instacart Price Experimentation

Following a bombshell report from Groundwork Collaborative, Consumer Reports, and More Perfect Union revealing that Instacart uses AI to run pricing experiments on consumers, the Federal Trade Commission (FTC) yesterday launched an investigation into the company’s pricing schemes.

The report found that Instacart showed different shoppers different prices for the exact same groceries, a scheme that could cost families more than $1,200 a year at checkout. It sparked immediate scrutiny of Instacart’s opaque pricing tools and raised fresh questions about how corporations are using AI to quietly drive up costs for consumers amid a nationwide affordability crisis.

Groundwork Action’s Executive Director Lindsay Owens reacted with the following statement:

“At a time when families are being squeezed by the highest grocery costs in a generation, Instacart chose to run AI experiments that are quietly driving prices higher. While the FTC’s investigation is welcome news, it must be followed with meaningful action that ends these exploitative pricing schemes and protects consumers. Instacart must face consequences for their algorithmic price gouging, not just a slap on the wrist.”