"Critics charged that the whole purpose of the AI-based dynamic pricing was to figure out the maximum amount you are willing to pay and squeeze it out of you. Right now, Instacart is quietly running experiments on millions of us while we shop for groceries online. They are trying to figure out exactly how much they can get away with charging you for breakfast cereal, lunch meat, pasta, and everything in between."
"Reuters just reported this week that the Federal Trade Commission (FTC) has opened a probe into Instagram's AI price manipulation, as the platform was found to be charging different shoppers anywhere between $3.99 and $4.79 for the same carton of eggs from the same store when purchased on Instacart. The probe itself is not an accusation of wrongdoing. In this case, it's merely a civil investigative demand seeking more information about the AI pricing tool and how it works."
An investigation found Instacart's AI-based dynamic pricing charged some shoppers up to 23% more for identical items purchased from the same store at the same time. Consumer Reports and advocacy groups found the tool appeared designed to identify each customer's maximum willingness to pay. Instacart reportedly ran experiments on millions of online grocery shoppers to vary prices across items such as cereal, lunch meat, and pasta. Reuters reported that the Federal Trade Commission has opened a probe and issued a civil investigative demand seeking details about the AI pricing tool. The probe is investigative and not an accusation of wrongdoing.
Read at sfist.com
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