SACRAMENTO, CA — Assemblymember Chris Ward (D–San Diego) responded to a new Consumer Reports investigation showing that Instacart used AI-driven price testing that caused some customers to unknowingly pay more for identical grocery items, findings that directly reinforce Ward’s ongoing work to regulate “surveillance pricing.”
The investigation revealed dramatic, unexplained price variability, with some items having as many as five different prices and total grocery bills fluctuating for no clear reason. Shoppers were effectively subjected to individualized price experiments in which an algorithm quietly tested how much they might tolerate—precisely the type of opaque practice Ward sought to address in his earlier legislation, AB 446, and is preparing to revisit next year.
“This investigation exposes yet another practice that should outrage every consumer. Using AI-driven prices leaves customers unknowingly paying more simply because an algorithm decided to ‘test’ them. This report proves the threat is real and already happening. That’s why I’m coming back next year with new legislation to stop companies from exploiting Californians at checkout under the guise of technology.” Ward said.
Consumer Reports emphasized that these price-manipulation tactics are becoming increasingly common across sectors as companies deploy algorithmic tools behind the scenes.
“This investigation shows how it’s becoming more common for companies to use hidden algorithmic pricing techniques without telling the customer,” said Justin Brookman, Director of Tech Policy at Consumer Reports. “In the case of Instacart, these tactics hurt families who are simply trying to purchase essential groceries. At a time when everyday Americans are struggling with high prices, it is particularly egregious to see corporations secretly conducting individual experiments to see how much a person is willing to pay. Companies must be transparent and upfront with people about pricing, so that they can make informed choices and keep more of their hard-earned money.”
Ward’s forthcoming bill, set to be introduced early in 2026, will build upon the framework of AB 446 to strengthen consumer protections, increase transparency, and prohibit companies from using algorithmic tactics to quietly alter or test prices on individual shoppers.