Instacart said Monday (Dec. 22) that it is ending the program where some customers have seen different prices, according to the Associated Press. The catch was that those prices were for the same product ordered at the same time from the same store when using the app.
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Wait, What happened?
The program was designed to help grocers and other retailers understand the types of prices customers are willing to pay. It is similar to how stores offer different prices for the same products in different locations. However, a report from Consumer Reports and two progressive advocacy groups, Groundwork Collaborative and More Perfect Union, raised concerns. Their report found that Instacart offered nearly three-quarters of grocery items to shoppers at multiple prices in the test.
Additionally, Instacart said these services are not “fluctuating pricing,” a system where the price of an item can increase when demand is high. The services also were not “price surveillance,” where prices could be set based on a user’s income, purchase history or other personal information. Instead, the company said it is offered to customers anywhere.
Some customers may see a slightly higher price for the item, while others may see a lower price. The report, for example, found that Instacart customers saw one of five different prices for the same dozen Lucerne eggs at a Safeway store in Washington, DC: $3.99, $4.28, $4.59, $4.69, or $4.79.
What Does This Mean for Instacart?
Merchants will continue to set their prices on the delivery website and may still offer different prices at different brick-and-mortar locations, Instacart said. However, “From now on, Instacart will not support any price checking services.”
“At a time when families are working hard to stretch every grocery dollar, those tests have raised concerns, leaving some people questioning the prices they see on Instacart,” the company said in a Monday blog post. “That’s not fair – especially for a company built on trust, transparency, and affordability.”
Instacart has been offering a price-checking service to merchants since 2023. The company declined to say how many customers were affected. But, it will terminate the service, it will work quickly.
The company will pay $60 A million In Customer Returns
In another case, Instacart agreed to pay $60 million in refunds to customers to resolve the organization’s allegations of fraudulent practices. The Federal Trade Commission accused Instacart of falsely advertising free delivery and not clearly disclosing fees for the service. Those fees add about 15% to the order and customers have to pay them. Instacart has denied the FTC’s allegations of wrongdoing. Also, it said it reached an agreement to move forward and focus on its business.
“Trust is earned through transparency and consistency,” Instacart said in a blog post on Monday. “Customers should never second guess the prices they see.”
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What do you think Roomies?
