A collaborative report from Consumer Reports, Groundwork Collaborative and More Perfect Union has uncovered pricing experiments within the Instacart app that yielded higher or lower prices for different users on the exact same items from the same store location.The organizations partnered to enroll 437 shoppers in an experiment across four cities, where each shopper added the same items to their carts within Instacart from the exact same store. Almost 75 percent of grocery items were shown to shoppers at multiple price points, with as many as five different prices shown for the same item. The average difference between the highest and lowest price shown was 13 percent, while the highest delta on an individual item was a whopping 23 percent.Engadget reached out to Instacart and received the following response. It reads in part: "Just as retailers have long tested prices in their physical stores to better understand consumer preferences, a subset of only 10 retail partners - ones that already apply markups - do the same online via Instacart. These limited, short-term, and randomized tests help retail partners learn what matters most to consumers and how to keep essential items affordable." An Instacart spokesperson added that this is not dynamic pricing (insofar as it is not based on supply and demand), that no personal demographic data is used in the process and that these experiments are random.The bulk of the tests were conducted at Safeway and Target stores, which both yielded similar results. A Target spokesperson told the New York Times that the company "is not affiliated with Instacart and is not responsible for prices on the Instacart platform." Instacart told the Times that they were "evaluating different approaches" to cover the platform's costs at the time of the study, but have since discontinued pricing tests on Target orders.Instacart published a blog post today attempting to explain how these tests that showed higher prices are actually meant to help retailers invest in lower prices. It also waxes poetic about Instacart's commitments to affordable groceries for consumers.This article originally appeared on Engadget at https://www.engadget.com/big-tech/study-shows-that-instacart-was-charging-different-amounts-for-the-same-items-165108224.html?src=rss

Instacart has announced it will be ending price testing on its platform. This comes after a study published earlier this month revealed pricing experiments that led to some customers seeing higher prices than others and the FTC saying last week it would be investigating the grocery delivery app."Effective immediately, Instacart is ending all item price tests on our platform. Retailers will no longer be able to use Eversight technology to run item price tests on Instacart," an Instacart spokesperson shared with Engadget. The blog post called out "misconceptions and misinformation," maintaining that these price experiments were never the result of dynamic pricing and were never based on any personal or behavioral information about shoppers.In an earlier blog post responding to the study's allegations, Instacart said pricing changes were a "form of short-term, randomized A/B testing." The post referred to this process as "common in the grocery industry" and continued to paint the practice as a way to "invest in lower prices." It also highlighted that Instacart does not set the prices on its platform, which are set by retailers listed on the app.The company made clear that its retail partners will continue to set their own prices on the platform, which may vary by location just as they do in brick-and-mortar stores, but that Instacart will no longer support any item price testing services.This article originally appeared on Engadget at https://www.engadget.com/big-tech/instacart-is-ending-its-controversial-price-tests-134552152.html?src=rss