New York Attorney General Letitia James is seeking clarity from Instacart over its pricing strategies after a study revealed that users were charged different rates for identical products. AG James stated, "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," and called for transparency under New York's Algorithmic Pricing Disclosure Act, according to the Office of the New York State Attorney General.
The study, conducted by Groundwork Collaborative and Consumer Reports, found a 13 percent average price difference for the same grocery items, potentially costing an average family of four an extra $1,200 annually. In response, Instacart said it would discontinue these "item price tests," while AG James warned, "Instacart’s pricing experiments raise serious concerns about its use of algorithmic pricing, and I will not hesitate to take action to enforce our laws and protect consumers," as reported by the Office of the New York State Attorney General.
On November 10, 2025, the state passed the Algorithmic Pricing Disclosure Act, requiring companies using algorithmic pricing to show a clear message saying, "THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA." Attorney General Letitia James said Instacart’s disclosures, which are on a hard-to-find page, may not follow the law. James has also issued a consumer alert about algorithmic pricing and taken action against price increases on items like eggs, baby formula, and COVID-19 products. She is asking Instacart for details about their partnerships, pricing tools, experiments, and compliance with the law, as stated by the Office of the New York State Attorney General.
