Instacart, the widely used grocery delivery platform, is now facing fire over claims that its new AI-powered pricing tool has been unfairly targeting customers. A new consumer study proving that consumers could be charged wildly varying prices for the exact same products in the same retailer. This opens the door to major misleading practices. The Federal Trade Commission (FTC) has announced an investigation into these revelations. They are waving the flag for transparency in the boomtown world of online delivery services.
The controversy surrounding Instacart’s pricing tool has intensified as the FTC aims to ensure fair competition among online delivery platforms. Christopher Mufarrige, a spokesperson for the FTC, stated, “The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms.” This proclamation foreshadows the agency’s willingness to protect consumers from wrongful practices and uphold honesty within commercial dealings.
Instacart, which has become a significant player in the grocery delivery sector, acknowledged the investigation in a recent blog post. In the face of these allegations, the company denied “any allegations of wrongdoing,” arguing that its pricing strategies operate well within regulatory guardrails. The study uncovered major gaps. In response, we’ve been digging deeper into how the tool operates, its impacts on consumer pricing, and more.
Aisha Malik, consumer news reporter with TechCrunch has been watching this very closely. Malik received his honours bachelor’s degree from the University of Toronto and a master’s degree in journalism from Western University. He came to TechCrunch in 2021 from his previous role as a telecom reporter at MobileSyrup. She’ll be at the next one in San Francisco, October 13-15, 2026, so look for her there. Once there, some of the most problematic industry practices will be tackled and debated.
As Instacart continues through this difficult balancing act, we encourage them to prioritize consumer trust in all decision-making. The differences in prices may lead to negative consumer reactions and loss of faith in the brand. Yet the FTC investigation may fundamentally reshape the operation of Instacart and other similar platforms. Its result could determine whether these services flourish or languish, and in which manner.
