Your grocery prices may be higher than your neighbor's—for
the same items, at the same store, at the same time. In December 2024, Consumer Reports and the Groundwork Collaborative exposed what
privacy advocates had long suspected: Instacart was using AI to charge
different customers different prices. The Evidence An investigation with 437 volunteers across 4 cities revealed: Up to 23% price difference for identical items
Average 7% variance in shopping basket totals
$1,000+ annual cost increase for affected customers
Tests conducted at Albertsons, Costco, Kroger, Safeway, and Target The technology? Eversight—an AI pricing platform Instacart acquired in 2022
for $59 million. The FTC Response The fallout was swift: $60 million FTC settlement (December 2024)
Congressional inquiries from 12+ lawmakers
One Fair Price Act proposed by Senator Ruben Gallego
Instacart forced to end all AI price testing (December 22, 2024) How It Worked Eversight runs randomized pricing experiments Different users see different prices for identical products The AI learns who will pay more Prices adjust based on inferred willingness to pay Instacart claimed the tests weren't based on personal or demographic data.
Critics called it "digital pickpocketing." The Broader Problem This isn't just Instacart. Algorithmic pricing is spreading: Airlines and hotels have done it for years
Uber's "surge pricing" is the same concept
Amazon has tested dynamic pricing
Grocery stores are next 72% of Instacart users surveyed didn't want differential pricing for any
reason. Making Noise Compare prices using multiple accounts or browsers
Use price comparison tools before checkout
Support legislation like the One Fair Price Act
Opt out of personalization when possible The Reality: If the algorithm thinks you'll pay more, you will.