The U.S. Federal Trade Commission issued a civil investigative demand to Instacart Inc. on Wednesday, December 17, 2025, seeking information about the company’s Eversight AI‑driven pricing platform. The demand follows a Consumer Reports study that found shoppers were charged up to 23 % more for identical items on Instacart’s app, raising concerns about potential price discrimination.
Instacart’s Eversight tool, acquired in 2022, lets retailers run randomized A/B pricing experiments across the platform. Instacart maintains that the tests are not dynamic pricing and that retailers retain full control over the prices displayed. The FTC’s inquiry signals heightened scrutiny of algorithmic pricing practices in the grocery‑delivery sector.
The investigation could lead to additional compliance costs and potential regulatory restrictions on Instacart’s pricing methodology. Instacart has not yet responded publicly, but the demand marks a significant regulatory milestone that may influence investor sentiment and the company’s future pricing strategy.
Market reaction to the demand was swift: Instacart’s stock fell more than 10 % in after‑hours trading on December 17, reflecting investor concerns about regulatory penalties, increased compliance costs, and reputational damage. Analysts noted that the price drop was driven by the FTC’s probe and the Consumer Reports findings, which highlighted the potential for inflated grocery bills.
Management has emphasized that retailers control pricing and that the tests are randomized A/B experiments rather than dynamic or surveillance pricing. In a 2024 investor call, Instacart’s CEO said the AI pricing algorithms help the company “really figure out which categories of products our customers are more price sensitive on” and to set prices “based on that information.”
The FTC’s action could serve as a test case for algorithmic pricing enforcement, as courts have limited precedent for treating AI‑driven personalized pricing as unfair or deceptive under consumer protection law. The probe may also prompt other e‑commerce platforms to re‑evaluate their own AI pricing strategies.
Instacart’s stock decline underscores the market’s sensitivity to regulatory actions that could constrain the company’s ability to monetize its AI platform and maintain pricing flexibility for its retail partners. The demand therefore represents a material event that could reshape the company’s regulatory risk profile and operational strategy.
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