Instacart shares drop on report FTC probing company's AI pricing tool
CNBC••business
Key Points:
- Instacart shares fell about 7% in after-hours trading following reports that the U.S. Federal Trade Commission (FTC) has launched an investigation into the company's pricing practices.
- The FTC issued a civil investigative demand to Instacart amid concerns raised by a study showing price variations of around 7% for the same products across supermarkets using Instacart, potentially costing customers over $1,000 annually.
- Instacart stated that retailers set the prices listed on its app, while the company previously acquired AI-driven pricing firm Eversight to offer real-time savings opportunities.
- U.S. House Democrat Robert Garcia sent a letter to Instacart’s CEO demanding transparency on the company’s pricing methods, criticizing the use
