AI-powered 'Dynamic Pricing' in Trouble; US Legislation Expected Following Instacart Report.

US lawmakers are considering action against the practice of "dynamic pricing" after a report revealed that the grocery delivery app Instacart charged different customers varying prices for the same items at the same stores.

The report, which found that customers paid widely different prices at major chains like Target, Kroger, and Costco without disclosure, "shocked and concerned" members of Congress, according to the consumer group Groundwork Collaborative.

Alleging that companies use customer data and Artificial Intelligence (AI) to charge the maximum amount a person is willing to pay, Senator Ruben Gallego introduced legislation to ban such practices.

House Democrats are also exploring ways to regulate dynamic pricing, calling the practice "unfair and potentially deceptive." Meanwhile, Instacart responded by stating that its pricing tests have ended and denied using personal data to set prices.