Instacart has announced it will immediately terminate a price-testing program that had caused shoppers to see different prices for the same item.
The Program’s Purpose
Instacart’s price-testing service was introduced in 2023 to help retailers learn how customers respond to varying price points. The company said retailers could set their own prices on the delivery website, and that Instacart would not add its own dynamic or surveillance pricing. Instead, the service offered random price variations to customers.
Consumer Reports Investigation
A report from Consumer Reports, Groundwork Collaborative, and More Perfect Union found that nearly 75 % of grocery items were shown at multiple prices. The study highlighted a Safeway dozen of Lucerne eggs in Washington, D.C., where customers saw one of five prices: $3.99, $4.28, $4.59, $4.69, or $4.79.
Instacart’s Blog Response
In a Monday blog post, Instacart said, “At 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.” The post also stated, “That’s not okay – especially for a company built on trust, transparency, and affordability.”
Commitment to Transparency
Instacart added, “Trust is earned through clarity and consistency,” and promised that customers would no longer have to second-guess the prices they’re seeing. The company clarified that the price-testing services were not dynamic pricing or surveillance pricing, and that the random variations were the only method used.
Immediate Effect
The company confirmed that the price-testing service would end effective immediately. Instacart declined to disclose how many customers were affected, but said retailers would still be able to set distinct prices at different brick-and-mortar locations.
FTC Settlement Context
Last week, Instacart agreed to pay $60 million in customer refunds to settle federal allegations of deceptive practices. The Federal Trade Commission had accused the company of falsely advertising free deliveries and failing to clearly disclose service fees that could add up to 15 % of an order.
Company’s Position on the Settlement
Instacart denied wrongdoing and said it reached the settlement to move forward and focus on its business. The company’s blog reiterated its commitment to clarity, saying, “Customers should never have to second-guess the prices they’re seeing.”
What the Price-Testing Looked Like
During the experiment, some shoppers saw a slightly higher price while others saw a slightly lower price for the same item. The random nature of the variations meant that no customer could predict the price they would receive.
Retailer Perspective
Retailers who participated in the program had the ability to offer different prices at various physical locations. Instacart clarified that it would not support any item price testing services from now on, but retailers could still set their own prices on the delivery website.
Key Takeaways
- Instacart ends its price-testing program after a study revealed shoppers saw multiple prices for the same product.
- The company cites a $60 million refund settlement with the FTC as part of broader trust-building efforts.
- Retailers retain the ability to set prices on Instacart, but the random price-variation feature is discontinued.
The decision reflects Instacart’s response to consumer concerns and regulatory scrutiny, aiming to restore confidence in the platform’s pricing practices.
