Instacart is scrapping its price tests after facing huge blowback from customers.<\/p>\n
The grocery delivery service announced Monday that it is ending its item price-testing program following an investigative report<\/a> that found customers were being charged different prices for the same products, even when the items were ordered at the same time. As users have become more aware of encroaching surveillance pricing<\/a>, public reaction against Instacart has been swift and attracted the attention of regulators<\/a>.<\/p>\n The backlash was sparked by a report<\/a> earlier this month from Consumer Reports, Groundwork Collaborative, and More Perfect Union. The investigation found that Instacart charged some customers nearly 25% more than others for the same products bought at the same stores. Those price differences were allegedly tied to the company\u2019s Eversight pricing tool, which Instacart describes as an \u201cAI-powered pricing and promotions platform.\u201d<\/p>\n The report outlined findings from an experiment conducted in September, in which 437 shoppers across several cities added the same items to their Instacart carts from the same stores. On average, shoppers saw a 13% price difference for the same items, with some gaps as high as 23%.<\/p>\n In a press release<\/a> on Monday, Instacart said retailers will no longer be filtered through the Eversight tool.<\/p>\n \u201cAt a time when families are working exceptionally hard to stretch every grocery dollar, those tests raised concerns, leaving some people questioning the prices they see on Instacart,\u201d the press release reads. \u201cThat\u2019s not okay \u2013 especially for a company built on trust, transparency, and affordability.\u201d<\/p>\n Instacart has claimed the price differences stemmed from experiments run in partnership with a small number of retailers, and that prices were randomized rather than based on customers\u2019 demographics or personal information.<\/p>\n \u201cEven though these tests were not dynamic pricing or surveillance pricing \u2013 and were never based on supply or demand, personal data, demographics, or individual shopping behavior \u2013 we\u2019ve listened carefully to the feedback from our customers, and we understand these tests fell short of their expectations,\u201d the company said.<\/p>\n The move comes just days after some media outlets reported that the Federal Trade Commission has launched a probe into Instacart\u2019s pricing practices<\/a>.<\/p>\n