All Instacart customers will now be charged the same amount as other customers for the same product, following a landmark suit with the Federal Trade Commission (FTC).
On December 18, the FTC ordered Instacart to pay $60 million to settle claims that it had deceived consumers with false advertising, failed to provide refunds, and used unlawful subscription enrollment processes.
The grocery delivery platform has since responded to criticism over the pricing, claiming much of it “included misconceptions and misinformation about what we do”.
“Our customers have high expectations for Instacart. And for some, we fell short of those expectations,” Instacart said in a statement.
“We understand that the tests we ran with a small number of retail partners that resulted in different prices for the same item at the same store missed the mark for some customers.
“At a time when families are working exceptionally hard to stretch every grocery dollar, those tests raised concerns, leaving some people questioning the prices they see on Instacart. That’s not okay – especially for a company built on trust, transparency, and affordability.”
It will now be ending all item price tests on its platform.
Retailers will continue to set their own prices on Instacart, including variations between the e-commerce service and the retailer’s own brick-and-mortar stores. Still, Instacart said retailers will no longer be able to use its Eversight technology to conduct price tests.
“Pricing is complex, and retailers have long used different approaches across different markets. Just as prices can vary between physical store locations, retail partners may continue to vary item prices on a store-by-store basis on Instacart,” the statement added.
“Customers should never have to second-guess the prices they’re seeing. Ending item price tests on our platform is an important step to ensure Instacart remains a place where families can shop with confidence and get the groceries and everyday essentials they need from the retailers they know and rely on.”
