Instacart Faces Regulatory Scrutiny Over Pricing Practices and Settlement

Grocery delivery platform Maplebear, operating as Instacart, finds itself navigating a dual regulatory challenge. The company has agreed to a multimillion-dollar settlement with the Federal Trade Commission (FTC) while simultaneously facing a new investigation into its artificial intelligence pricing software. The developments raise questions about the future of its Eversight tool and the underlying business model.

In late December, specifically on the 18th and 19th, legal filings confirmed Instacart will pay $60 million to resolve FTC allegations concerning deceptive advertising and billing practices. The regulator accused the company of promoting "free delivery" while charging mandatory fees. Furthermore, its "100% satisfaction guarantee" was allegedly often fulfilled through account credits rather than refunds. While Instacart denies any wrongdoing, the settlement mandates enhanced transparency regarding fees.

Separately, the FTC has issued a Civil Investigative Demand (CID) focusing on the company's use of Eversight, an AI-powered pricing platform acquired in 2022 for approximately $59 million. This probe examines whether the tool's operations violate consumer protection laws.

Research Findings and Market Response

A study conducted by Consumer Reports and the Groundwork Collaborative analyzed data from 437 shoppers, revealing significant price discrepancies. Customers were shown different prices for identical items at the same time, with an average variance of 7% and peaks reaching 23%. The FTC described these findings as troubling. Instacart countered that the variations resulted from randomized A/B testing designed to optimize offerings for retail partners, not from personalized dynamic pricing aimed at consumers.

Should investors sell immediately? Or is it worth buying Maplebear?

The market reacted swiftly to news of the AI investigation. Instacart shares fell roughly 6% in pre-market trading on Thursday. However, by Friday's close, the stock had stabilized, finishing the session at $45.94, a daily gain of 2.20%. Market observers viewed the recovery above the $45 level as a sign of technical stabilization.

Financial Health and Strategic Implications

Instacart's underlying financial position appears robust. For the third quarter of 2025, the company reported revenue of $939 million, representing 10% year-over-year growth. Its GAAP net income reached $144 million, a 22% increase. The $60 million settlement amounts to less than half of its quarterly profit and is not expected to materially impact liquidity.

The central question for investors is the potential outcome of the FTC's inquiry into Eversight. Should regulators determine the pricing experiments are discriminatory, Instacart could be forced to limit or modify the tool's functionality. This carries strategic weight, as Eversight is integral to the company's shift toward higher-margin enterprise services.

Analyst Outlook and Next Steps

Wall Street analysts maintain a cautiously optimistic stance. The current average price target for Instacart stock stands at $50.62, implying roughly 10% upside potential. The next significant catalyst will be the release of the Q4 2025 earnings report, anticipated in February 2026. During that update, management will likely face questions regarding legal expense accruals and the future operational scope of its pricing system—factors poised to influence the stock's next major move.