A recent post by labor and economic justice nonprofit More Perfect Union has ignited a debate about how artificial intelligence may be quietly driving up grocery costs for everyday Americans. 

The group shared an investigation revealing that Instacart, the dominant online grocery delivery platform, was using AI pricing algorithms to charge some customers more than others for the exact same foods purchased from the same store. A practice critics have likened to secret price gouging. 

According to reports by More Perfect Union, Consumer Reports, and think tank Groundwork Collaborative, up to 74% of tested grocery items on Instacart showed multiple price points for the same item when added to baskets at the same time. Prices for identical products varied by as much as 23%, and a typical family could have paid as much as $1,200 extra per year due to these algorithmic price tests. (RELATED: Federal Judge Orders Release of Flock Safety Camera Locations Across Hampton Roads)

Instacart defends the pricing experiments, using technology acquired from the AI firm Eversight. They say the uses were limited, only using randomized tests designed to help retailers learn how pricing affects consumer behavior, and not dynamic or “surveillance” pricing based on individual shopper data. The company also insists that retailers, not Instacart itself, control prices on the platform. 

The Federal Trade Commission (FTC) has opened aformal inquiry into Instacart’s AI pricing practices, raising questions about whether such algorithms could constitute unfair or deceptive acts under U.S. law. Particularly, food affordability remains a top concern for households across the country. (RELATED: Virginia Moves to Block SNAP Purchases of Soda Under New Federal Agreement) 

Senate Majority Leader Chuck Schumer wrote to the FTC urging greater transparency, noting that consumers “deserve to know when they are being placed into pricing tests.” Lawmakers are now considering legislative action, including proposals to mandate disclosure of AI-based algorithm pricing practices and protect consumers from undisclosed price changes.