Instacart shares drop on report FTC probing company’s AI pricing tool
Grocery delivery service shares Instacart It fell nearly 7% in extended trading Wednesday following a report saying the U.S. Federal Trade Commission had opened an investigation into the company’s pricing practices.
According to Reuters, based on unnamed people, the FTC requested a civil investigation against Instacart.
“The Federal Trade Commission has a long-standing policy of not commenting on potential or ongoing investigations,” the FTC said in a statement to CNBC. he said. “But like many Americans, we are disturbed by what we read in the press about Instacart’s alleged pricing practices.”
A study published last week showed that prices for the same items at the same supermarkets that operate Instacart can vary by nearly 7%, resulting in over $1,000 in extra costs for shoppers annually. Instacart responded by saying retailers set the prices listed on the app.
In 2022, Instacart spent $59 million to acquire Eversight, a company specializing in AI-driven pricing and promotions for retailers and consumer packaged goods. With Eversight, Instacart aimed to “create attractive savings opportunities for customers in real time.” regulatory filing.
Instacart did not immediately respond to a request for comment.
— CNBC’s Annie Palmer contributed to this report
