The FTC has launched a significant investigation into Instacart, focusing on allegations that the company’s AI-powered pricing tool is charging customers unfairly higher prices for identical products from the same store.
Following concerns over deceptive advertising practices, Instacart agreed to pay $60 million in customer refunds, as the FTC revealed issues like false claims about free deliveries and undisclosed fees.
Some customers may face price hikes of up to $1,200 annually due to the reported pricing discrepancies, raising alarm among consumers and regulators alike.
Instacart is now under pressure as a civil investigative demand has been issued, compelling the company to disclose its pricing mechanisms to authorities.
The revelations have hit Instacart hard in the stock market, with shares plunging about 10 percent as the investigation unfolds.
This scrutiny underscores a broader call for transparency in AI-driven pricing practices across the retail industry, reflecting growing consumer demand for fair treatment and accountability.
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