NASHVILLE, Tenn. (WTVF) — Use Instacart for grocery deliveries? You might be paying more than the person right next door — and never know it.
A new Consumer Reports investigation found Instacart running AI-assisted pricing experiments on shoppers across several major grocery chains. And the price differences?
They can be big.
In some cases, shoppers saw prices that were 23 percent more for the exact same item.
“We had hundreds of volunteers across the country shop for the same items at the same time. And in every single test, every shopper was part of a pricing experiment,” said Consumer Reports Investigative Reporter Derek Kravitz.
That means two people buying the same groceries from the same store at the same time could see very different prices.
And those differences can add up: At one Safeway in the Seattle area, the same basket of groceries ranged from about 114 to nearly 124 dollars.
“Based on the variations we saw and using Instacart's numbers for what a typical household of four spends on groceries, that could mean a price swing of roughly $1,200 a year,” said Kravitz.
Instacart confirmed Consumer Reports findings but says only 10 retailers use its pricing tools. Instacart also insists that most customers still see standard prices and that personal or demographic data isn’t used.
Target told Consumer Reports that it had no business relationship with Instacart.
Safeway, Costco, and Kroger did not respond to Consumer Reports questions about Instacart’s price experiments. Sprouts declined to comment.
Instacart has since said it has stopped experiments at Target and at Costco.
So what can you do? Consumer Reports advice: shop in person when possible and stick to simple money-savers like planning your list and buying in bulk.
States are already starting to respond to concerns about algorithmic pricing. New York now requires any algorithm-set price to carry a clear disclaimer, and places like California, Colorado, and Pennsylvania are considering bills that would ban surveillance pricing altogether for certain types of retailers.
Do you have more information about this story? You can email me at jennifer.kraus@newschannel5.com.
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