FTC Investigates Instacart Over AI Pricing Tool, Shares Fall
Instacart, a leading grocery delivery platform, is being investigated by the U.S. Federal Trade Commission (FTC) over its use of an artificial intelligence (AI) tool that sets prices. The probe comes after reports that customers were charged different prices for the same items.
The FTC has sent Instacart a civil investigative demand, asking for more information about the company's AI-powered pricing tool, known as Eversight. This tool reportedly adjusts prices, which has led to concerns about fairness and transparency in how prices are set.
After news of the investigation became public, Instacart's parent company, Maplebear Inc., saw its stock price drop by about 11%.
The FTC wants to find out if Instacart's AI pricing tool is charging customers unfairly or differently for the same products.
Instacart uses an AI tool called Eversight that automatically sets and adjusts product prices.
Instacart's stock fell by about 11% after reports of the FTC investigation.
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