5 ON YOUR SIDE: Instacart pricing

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    5 ON YOUR SIDE: Instacart pricing5 ON YOUR SIDE: Instacart pricing

Instacart shoppers may be paying very different prices for the exact same groceries — even when they live in the same neighborhood. A new Consumer Reports investigation found that the company has been running AI-assisted pricing experiments across several major grocery chains, and in some cases, the discrepancies were significant. Some shoppers saw prices that were as much as 23 percent higher for identical items.

Consumer Reports found evidence of these experiments at retailers including Costco, Kroger, Safeway, Sprouts, Albertsons, and Target. According to CR investigative reporter Derek Kravitz, every volunteer who participated in the nationwide test was part of a pricing experiment. Hundreds of shoppers were asked to buy the same items from the same stores at the same time, yet no two people saw an identical set of prices.

RELATED: Instacart ends a program where users could see different prices for the same item at the same store

The price swings were often more than small fluctuations. At a Safeway in the Seattle area, the same basket of groceries cost some shoppers about $114, while others paid nearly $124 for the very same items. Based on Instacart’s own estimates of what a typical four-person household spends on groceries, CR calculated that these kinds of price differences could amount to roughly $1,200 more per year for some families.

Instacart confirmed CR’s findings but said only 10 retailers use its pricing tools and that most shoppers still see standard prices. The company also said it does not use personal or demographic data to determine what prices customers see. Target told CR it has no business relationship with Instacart. Safeway, Costco, and Kroger did not respond to CR’s questions, while Sprouts declined to comment. Instacart has since said it stopped running pricing experiments for Target and Costco.

So what can consumers do? CR recommends shopping in person when possible and leaning on simple habits that can reliably save money, such as planning your list and buying in bulk.

States are beginning to respond to concerns about algorithmic pricing. In New York, any price set by an algorithm must now carry a clear disclaimer. Lawmakers in California, Colorado, and Pennsylvania are considering legislation that would ban “surveillance pricing” altogether for certain types of retailers.
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