Instacart announced on Monday (Dec. 22) that it is discontinuing a program where some customers encountered varying prices for the same product ordered simultaneously from the same store via the app, according to Associated Press.

RELATED: Unacceptable Delivery: Woman Discovers SHOCKING Surprise In Her Delivery Box | TSR Investigates

What Happened?

The program aimed to assist grocers and other retailers in understanding customer price sensitivity. It resembles the practice of offering different prices for identical products across various locations. However, a report by Consumer Reports along with two advocacy groups, Groundwork Collaborative and More Perfect Union, raised significant concerns. Their findings indicated that nearly 75% of grocery items were offered at multiple prices during an experiment conducted by Instacart.

Moreover, Instacart clarified that these services did not constitute “dynamic pricing,” where prices increase with high demand, nor “surveillance pricing,” which adjusts prices based on a user’s income or shopping history. Instead, the company stated that pricing was randomized for customers.

Some customers would see a slightly elevated price for an item, while others would see a somewhat reduced price. For instance, the report highlighted that Instacart customers observed one of five different prices for a dozen Lucerne eggs from a Safeway store in Washington, D.C.: $3.99, $4.28, $4.59, $4.69, or $4.79.

What Does This Mean For Instacart?

According to Instacart, retailers will continue to set their own prices on the delivery platform and may still offer different prices at various physical locations. However, “from now on, Instacart will not support any item price testing services.”

“At a time when families are striving to make every grocery dollar count, those tests raised concerns and left some individuals questioning the prices they see on Instacart,” the company stated in a blog post on Monday. “That’s unacceptable – especially for a company built on trust, transparency, and affordability.”

Instacart had been providing the price-testing service to retailers since 2023. The company did not disclose how many customers might have been impacted but confirmed that it would terminate the service immediately.

Company Will Pay $60 Million In Customer Refunds

In another matter, Instacart agreed to pay $60 million in customer refunds to resolve federal allegations of deceptive practices. The Federal Trade Commission accused Instacart of misleadingly advertising free deliveries while failing to clearly disclose service fees that could add up to 15% to an order, which customers are required to pay. Instacart denied any wrongdoing as alleged by the FTC but stated it reached a settlement to move forward and concentrate on its business.

“Trust is earned through clarity and consistency,” Instacart emphasized in its blog post on Monday. “Customers should never have to second-guess the prices they’re seeing.”

RELATED: Instacart Joins Growing List Of Ride-Share & Delivery Services Adding Fuel Surcharges