Instacart’s AI-driven pricing tool has attracted attention — and now the FTC has questions

According to Reuters, Instacart is currently getting the regulatory equivalent of a throat clearing from the Federal Trade Commission, which has sent the grocery delivery platform a civil investigative request regarding its AI-powered pricing tool, Eversight. In other words, the agency wants to know why some people pay more for organic granola than others.

The issue came to light after a study revealed that shoppers see very different prices for identical groceries from the same stores — prices up to 23% higher in some cases. Instacart says these price tests were random, and not tied to an algorithm that targets customers based on their browsing history. But when people are already concerned about buying eggs, this distinction probably doesn’t mean much.

Dynamic pricing isn’t necessarily new or bad. Harvard Business School will tell you how digital platforms stay competitive. Airlines use it, hotels use it, and Uber famously uses it. Companies argue that it helps balance supply and demand, maximize profitability, and create win-win scenarios.

But there’s a difference between paying premium prices for home delivery from the pub and paying extra for groceries (food is not optional). So, while the investigation found no wrongdoing, it’s not surprising that the FTC — which has investigated data-driven pricing strategies by other companies — is asking questions. In an economy where everyone is feeling the pinch, an AI-driven price test of kitchen essentials was bound to attract attention.