More than 40,000 consumers sign petition demanding investigations for potential deceptive or unfair pricing practices
Washington, DC – Following a joint investigation by Consumer Reports, Groundwork Collaborative and More Perfect Union into Instacart’s pricing practices, CR and More Perfect Union are urging the Federal Trade Commission (FTC) and state Attorneys General to launch an investigation into the individualized pricing of Instacart for potential deceptive or unfair pricing practices under Section 5 of the FTC Act. CR’s petition has received over 40,000 signatories asking for investigations into Instacart’s pricing tactics.
“Our investigation shows how companies like Instacart are starting to use secret algorithms to vary individual prices without disclosing it to unsuspecting consumers,” Justin Brookman, director of marketplace policy at Consumer Reports.
Brookman continued, “At a time when everyday Americans are struggling with high prices, it is particularly egregious to see corporations secretly conducting individual experiments to see how much a person is willing to pay. Companies must be transparent and upfront with people about pricing, so that they can make informed choices and keep more of their hard-earned money. We encourage lawmakers and regulators at the national and state levels to investigate Instacart’s pricing tactics.”
A recent Reuters report indicates that the FTC is probing Instacart over its artificial intelligence-driven pricing tool.
Contact: cyrus.rassool@consumer.org