AG James today sent a letter to online grocery shopping platform Instacart demanding more information about its use of algorithmic pricing and price-setting experiments after a recent report revealed Instacart users were being charged significantly different prices for the same products. In December, Groundwork Collaborative and Consumer Reports released a detailed study showing Instacart was varying prices for the same product, with some shoppers seeing prices that were up to 23 percent higher for the exact same products in the same store at the same time. New York’s recent Algorithmic Pricing Disclosure Act requires companies to clearly and conspicuously state when they are using consumers’ personal data to affect prices. Attorney General James warns Instacart that it may be violating the law, and requests detailed information on the pricing experiments highlighted in the recent report and Instacart’s efforts to comply with the Algorithmic Pricing Disclosure Act. 

“Charging different prices for the exact same products leaves shoppers feeling cheated and threatens to raise costs at a time when consumers are already paying too much at the grocery store. New Yorkers deserve fair prices and clear disclosures about how companies are using their personal information. Instacart’s pricing experiments raise serious concerns about its use of algorithmic pricing, and I will not hesitate to take action to enforce our laws and protect consumers.” – AG James