Ranking Member Robert Garcia Demands Answers from Instacart CEO Over Pricing That Unfairly Drives Up Grocery Costs for Families

Washington, D.C. — Today, Rep. Robert Garcia, Ranking Member of the Committee on Oversight and Government Reform, demanded answers from Chris Rogers, the Chief Executive Officer of Instacart, following an investigation that revealed Instacart may be using algorithmic and surveillance pricing to charge consumers different prices for the same grocery items. The letter raises serious concerns that Instacart’s pricing practices are increasing grocery costs for American families already struggling with the rising cost of living.

“At a time when families are struggling to put food on the table, it is unconscionable for companies to squeeze even more money out of people, especially if they’re doing so with secretive and predatory algorithms,” said Ranking Member Robert Garcia. “Instacart’s lack of transparency about what they’re tracking and how this pricing system works raises serious questions about whether they are using your data to charge the highest price they think you’ll tolerate. We demand to know if the American people are getting unfairly squeezed, and we won’t stop until these potentially predatory practices are stopped.”

In the letter, Ranking Member Robert Garcia wrote, “An investigation by Groundwork Collaborative, Consumer Reports, and More Perfect Union recently revealed that Instacart is using algorithmic pricing—also known as dynamic pricing—to charge different customers different prices for the same products. The investigation found that nearly 75% of grocery items were offered to customers at different prices, even when customers were using Instacart to purchase from the same grocery store at the same time. The average price difference for an item was 13% and climbed as high as 23%. To bring transparency and accountability, I ask for detailed information on how Instacart sets its prices, what consumer data it considers when setting prices, and what pricing information Instacart shares with its grocery retail partners.”

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