Instacart ends its controversial dynamic price testing program

Instacart announced it is immediately ending a program that displayed different prices to different customers for the same item at the same store. The decision follows a report by Consumer Reports and advocacy groups, which revealed that nearly 75% of grocery items tested were offered at multiple price points to gauge consumer price sensitivity. Instacart maintained that the service was intended to help retailers test pricing strategies randomly rather than utilizing “dynamic” or “surveillance” pricing based on user data. This policy shift comes just one week after the company agreed to pay $60 million to settle FTC allegations regarding deceptive service fees and misleading marketing.