Instacart stock dropped 2.1% on Thursday after New York Attorney General Letitia James asked the company for information about how it sets prices. The move comes after a study raised concerns that customers were being charged different prices for the same items.
The research, conducted by Groundwork Collaborative and Consumer Reports, found that nearly three-quarters of items tested on Instacart were sold at multiple prices. On average, prices varied by 13%, with some differences reaching as high as 23%.
AG James warned that Instacart could be breaking New York’s Algorithmic Pricing Disclosure Act, which took effect on November 10, 2025. The law requires companies to clearly inform customers when personal data is used to set individualized prices. The disclosure must say: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.”
The Attorney General’s office said Instacart’s current disclosures are hard to find. They are buried in fine print and not shown near product prices, which may violate the law.
The study estimated that these price differences could cost a typical family of four around $1,200 per year. Instacart said it would stop all “item price tests” after the study was published. However, retail partners on the platform can still run different promotions and discounts.
The AG is asking Instacart for detailed information about its pricing practices. This includes agreements with retail partners, automated pricing tools, and steps taken to comply with New York’s disclosure requirements.