The US Federal Trade Commission (FTC) has issued a civil investigative demand to Instacart (NASDAQ:CART) for information on its Eversight tool, which allows retailers to test price changes through A/B experiments, the company said.
The move comes after reports last fall, including by Consumer Reports, found that identical grocery baskets often cost an average of 7% more online, potentially adding about $1,200 annually to a typical family of four’s grocery bills.
Instacart said retailers retain control over prices and described the experiments as routine steps to align online and in-store pricing. Nonetheless, the news fueled investor concern, sending Instacart shares down as much as 11% before rebounding Thursday morning to near opening levels.
The FTC’s probe underscores growing scrutiny of AI-driven pricing in the grocery sector, as US households continue to navigate elevated living costs. The investigation could have wider implications for how digital platforms use data and automation to set prices.
Shares of Instacart were trading just above $45 in early trading Thursday.