Maplebear Inc. (CART) shares dropped Thursday after reports surfaced that the Federal Trade Commission is investigating the company's AI-driven pricing technology.
Why the Scrutiny?
According to Reuters, the FTC has issued a civil investigative demand to Maplebear, which operates Instacart, regarding its AI pricing tool called Eversight. The inquiry focuses on how retailers use the software to experiment with different price points.
The tool landed in hot water following a recent study revealing that Instacart shoppers were seeing different prices for the same grocery items. That's the kind of thing that makes regulators sit up and take notice.
The FTC declined to comment on any potential or ongoing investigations, but said it was "disturbed" by reports about Instacart's alleged pricing practices. The agency emphasized that opening a probe doesn't prove wrongdoing and that investigations don't always result in legal action.
Instacart's Defense
Instacart pushed back last week, explaining that pricing tests run through Eversight are randomized and don't rely on individual user data or behavior. The company also said it's been collaborating with retailers to promote price consistency between physical stores and online platforms.
CART Price Action: Maplebear shares were trading 0.33% lower at $45.50 at the time of writing.
