Instacart has announced it is ending a price-testing program that had caused some shoppers to see different prices for the same item at the same time from the same store. The move follows a report from Consumer Reports and two advocacy groups that found the company offered nearly three out of every four grocery items at multiple prices.
Why the Program Was Introduced
The program was intended to help grocers and other retailers learn what kinds of prices customers would pay, similar to how stores offer different prices for the same products at different locations. However, the experiment raised concerns after the report revealed shoppers saw multiple prices for the same product.
Company’s Response
Instacart said in a Monday blog post: “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 company added, “That’s not okay – especially for a company built on trust, transparency, and affordability.” Retailers will continue to set their own prices on the delivery website and may still offer different prices at different brick-and-mortar locations, but Instacart will no longer support any item price-testing services.
How the Testing Worked
Instacart clarified that the service was neither “dynamic pricing” nor “surveillance pricing.” Instead, prices were offered to customers at random. Some shoppers saw a slightly higher price, others a slightly lower one. For example, the experiment found that Instacart customers could see one of five different prices for a dozen Lucerne eggs from a Safeway store in Washington, D.C.: $3.99, $4.28, $4.59, $4.69, or $4.79.
Related Settlement
Last week, Instacart agreed to pay $60 million in customer refunds to settle federal allegations of deceptive practices. The Federal Trade Commission accused the company of falsely advertising free deliveries and not clearly disclosing service fees, which can add up to 15 % to an order. Instacart denied wrongdoing and said the settlement allows it to move forward and focus on its business. “Trust is earned through clarity and consistency,” the company said. “Customers should never have to second-guess the prices they’re seeing.”
Key Takeaways
- Instacart is ending its price-testing program effective immediately.
- The program had offered multiple prices for the same item to shoppers at random.
- The company also settled a $60 million FTC case over deceptive delivery fee practices.
By discontinuing the program, Instacart aims to restore confidence among shoppers and reaffirm its commitment to transparency and affordability.
