Instacart is ending its controversial price tests
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Instacart is ending its controversial price tests
"Effective immediately, Instacart is ending all item price tests on our platform. Retailers will no longer be able to use Eversight technology to run item price tests on Instacart," an Instacart spokesperson shared with Engadget. The blog post called out "misconceptions and misinformation," maintaining that these price experiments were never the result of dynamic pricing and were never based on any personal or behavioral information about shoppers."
"In an earlier blog post responding to the study's allegations, Instacart said pricing changes were a "form of short-term, randomized A/B testing." The post referred to this process as "common in the grocery industry" and continued to paint the practice as a way to "invest in lower prices." It also highlighted that Instacart does not set the prices on its platform, which are set by retailers listed on the app."
The FTC investigated a practice in which shoppers saw different prices for the same items. Instacart ended all item price tests on its platform and barred retailers from using Eversight technology to run item-level price experiments. Instacart characterized the pricing changes as short-term, randomized A/B testing common in the grocery industry, and stated the experiments were not dynamic pricing nor based on personal or behavioral shopper information. Instacart emphasized that retailers set the prices on the platform and that prices may vary by location as in physical stores. Instacart will no longer support any item price testing services.
Read at Engadget
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