Instacart to end AI price tests for retailers following investigation
Instacart had drawn criticism for testing an AI-based system that enabled retailers to charge different prices for the same grocery items.
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Instacart had drawn criticism for testing an AI-based system that enabled retailers to charge different prices for the same grocery items.
Instacart says its ending its controversial system of using AI price tests for retailers. Earlier this month, an investigation by Consumer Reports and progressive think tank Groundwork Collaborative found that Instacart's algorithmic pricing charged various prices for the same item from the same store. Jo Ling Kent reports.
Instacart has agreed to refund $60 million to customers to settle allegations that the grocery shopping service engaged in deceptive marketing and billing practices, the Federal Trade Commission said Thursday. CBS News reporter Karen Hua has more.
Instacart's "unlawful tactics" hurt shoppers and raised the cost of groceries, according to the FTC.
Shoppers may be unaware they're paying as much as 23% more than others for the same grocery items on Instacart, a new analysis says.
The popular app Instacart charged customers different prices on the same items bought from the same stores, an investigation from Consumer Reports and progressive think tank Groundwork Collaborative found. Instacart responded, saying, "These tests are not dynamic pricing. Prices never change in real time," adding, "retailers have long tested prices in their physical stores," and saying that 10 retail partners do so in the app. Jo Ling Kent has more.
Police said no charges have been filed related to the incident.
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