Instacart Stock Drops After FTC Probes AI-Based Price Discrimination Claims

Instacart (NASDAQ: CART) shares fell sharply in after-hours trading on Wednesday following a Reuters report that the U.S. Federal Trade Commission has launched an investigation into the company’s pricing practices. The online grocery delivery firm saw its stock slide as much as 11%, dropping to around $40.62, as investors reacted to concerns over potential AI-driven price discrimination.

According to Reuters, the FTC issued a civil investigative demand to Instacart requesting detailed information about its Eversight pricing tool. This artificial intelligence-powered system allows retailers using the Instacart platform to test and adjust prices dynamically, tailoring them based on consumer behavior and other variables. Regulators are reportedly examining whether this technology results in unfair or discriminatory pricing for shoppers.

The investigation comes amid growing scrutiny of Instacart’s pricing model. A recent study conducted by nonprofit groups Consumer Reports and Groundwork Collaborative found that customers on the platform were sometimes charged different prices for identical grocery items. In some cases, price differences reached as high as 23%, raising concerns that algorithmic pricing and AI tools may be disadvantaging certain consumers.

These findings have intensified calls from U.S. lawmakers for regulatory action. Senate Democratic Leader Chuck Schumer publicly urged the FTC to investigate Instacart’s pricing practices, citing worries about transparency and fairness at a time when grocery costs remain elevated nationwide. High food prices have become a major political and economic issue as American households face rising living expenses fueled by supply chain disruptions, extreme weather events, and the effects of recent trade tariffs.

Instacart has not yet issued an official response to the report or the FTC inquiry. On its website, the company describes itself as the largest online grocery marketplace in North America, partnering with major retailers to provide delivery and pickup services across the region.

The FTC investigation adds another layer of uncertainty for Instacart investors and highlights broader regulatory concerns around artificial intelligence, dynamic pricing, and consumer protection. As regulators continue to examine how AI is used in commerce, the outcome of this probe could have significant implications not only for Instacart but also for the wider e-commerce and online grocery industry.