"For example, in December 2025, Instacart drew strong criticism from Democratic Senator Charles Schumer of New York after it permitted grocery stores to test AI-powered, dynamic pricing. The experiment showed an average variation of about 7% between the lowest and highest prices for specific grocery items. But there were standouts, according to Consumer Reports, with Wheat Thins ranging from $3.99 per box to $4.89, 23% higher. Schumer likened the price differences to gouging and asked for an investigation by the Federal Trade Commission."
"Clemmons' House Bill 1468 would prohibit "personalized algorithmic pricing," which it defines as "dynamic pricing set by an algorithm that uses personal data." That definition targets any system that adjusts prices based on information tied to an individual shopper, including purchase history, browsing behavior, loyalty status, location signals, and other attributes. Conceivably, it could include aggregate data applied to individuals."
American lawmakers have shown increasing interest in limiting or banning data-driven price changes since at least 2021, driven by inflation concerns and rising AI use. A December 2025 Instacart experiment revealed an average 7% variation between lowest and highest grocery prices, with some items showing much larger differences, prompting calls for an FTC probe. Tennessee's HB 1468 would bar personalized algorithmic pricing defined as dynamic pricing using personal data, covering purchase history, browsing, loyalty status, location signals, and possibly aggregate data tied to individuals. The bill treats such pricing as an unfair or deceptive practice, enabling broad enforcement and retailer liability.
Read at Practical Ecommerce
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