New York Attorney General Letitia James has asked Instacart to explain how it sets prices after a report found shoppers were charged different prices for the same grocery items.
James sent a letter seeking details about Instacart’s use of algorithmic pricing and warning that the company may be violating New York’s Algorithmic Pricing Disclosure Act, which took effect in November 2025.
“Charging different prices for the exact same products leaves shoppers feeling cheated and threatens to raise costs at a time when consumers are already paying too much at the grocery store,” James said. “New Yorkers deserve fair prices and clear disclosures about how companies are using their personal information.”
A December study by Groundwork Collaborative and Consumer Reports tracked prices shown to 437 shoppers in four cities. Nearly three-quarters of items appeared at multiple prices, with an average difference of 13 percent and some as high as 23 percent. Researchers said the differences could cost a family of four about $1,200 a year.
After the report, Instacart said it ended “item price tests,” though grocery stores and brands on the platform may continue testing promotions and discounts.
The law requires companies using personal data to set prices to clearly disclose that practice near the price with a notice stating, “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.” James said Instacart’s disclosures may not meet that standard.
James also cited her office’s broader efforts to protect consumers from unfair grocery pricing, including alerts about algorithmic pricing and actions against price gouging. Instacart has not publicly responded to the letter.
