The big picture: Since its debut in 2012, Instacart has faced several controversies related to the pay structure of its workers, tipping policies, and working conditions. The company is now the subject of an FTC probe into alleged price manipulation tied to its AI-powered dynamic pricing tool.
According to sources cited by Reuters, the FTC has sent Instacart owner Maplebear a civil investigative demand related to its AI-driven pricing tool, Eversight. The probe was reportedly initiated following a Consumer Reports study that found the grocery delivery platform showed different prices to different shoppers for the same products.
The report states that the displayed prices varied significantly based on customer profile, with some shoppers charged up to 23 percent higher than others. The average price difference for the exact same set of items at the same supermarket was typically around seven percent, with the inflated prices potentially costing customers over $1,000 extra in a year.
The FTC told Reuters it was "disturbed" by reports of the alleged price gouging by Instacart, but did not officially confirm whether it opened an investigation into the matter. "The Federal Trade Commission has a longstanding policy of not commenting on any potential or ongoing investigations," the agency said.
FTC settlement resolves allegations that Instacart deceived consumers with false advertising, failure to provide refunds, and unlawful subscription enrollment processes /2
– FTC (@FTC) December 18, 2025
After Consumer Reports published its findings last week, Instacart issued a press statement admitting to the price variations. However, the company claimed that the pricing fluctuations were caused by some of its retail partners doing "limited, short-term and randomized tests" rather than the result of some platform-wide price manipulation by Instacart.
An Instacart spokesperson subsequently told CNBC that the report mischaracterizes dynamic pricing on the platform, adding that its retail partners control the pricing, and Instacart only works with them "to align their online and in-store pricing," if possible.
The spokesperson further claimed that prices on Instacart do not change in real time, aren't based on supply and demand, and that it "never uses personal, demographic, or user-level behavioral data" to set item prices.
Instacart's denial isn't sitting well with irate users and politicians. New York Senator and former Senate majority leader Chuck Schumer told the FTC in a handwritten letter that "Consumers deserve to know when they are being placed into pricing tests," and that the agency should require websites to display a "prominent on-screen label" every time a user is roped into an A/B test.
Earlier today, the FTC ordered Instacart to pay $60 million to customers to settle allegations of deceptive business practices. The agency found the company to have falsely advertised "free delivery" despite charging service fees, failing to provide refunds as part of its "100% satisfaction guarantee" promise, and auto-enrolling users into paid Instacart+ subscriptions without explicit consent.
Instacart says it doesn't manipulate prices using AI, but the FTC isn't convinced
