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NY AG Demands Instacart Algorithmic Pricing Disclosures Under New Law

InstacartJanuary 8, 2026New York Attorney General

Summary

New York Attorney General Letitia James sent a letter to Instacart demanding information about its use of algorithmic pricing, after a study found users were charged up to 23% more for identical products. The AG warned that Instacart’s pricing disclosures are non-compliant with New York’s Algorithmic Pricing Disclosure Act, which requires prominent notices near product prices when personal data is used to set prices. Instacart must provide details on its pricing experiments, automated tools, and compliance efforts with the state’s disclosure requirements.

Contract Impact

In-house legal teams should review all vendor, retail partner, and third-party pricing tool provider agreements for clauses related to algorithmic or surveillance pricing practices. Contracts should explicitly require compliance with state algorithmic pricing disclosure laws, including prominent placement of required notices near product prices when personal data is used for price setting. Teams should also ensure agreements prohibit undisclosed price experiments using consumer personal data and outline clear data use restrictions for pricing purposes. Additionally, any contracts involving automated pricing tools should mandate audit rights to verify compliance with disclosure and data use requirements.

Contract Search Terms

algorithmic pricingsurveillance pricingpersonal data use for pricingpricing disclosure requirementsprice setting experimentsautomated pricing toolsretail partner pricing agreementsconsumer data pricing adjustments

Laws Cited

New York Algorithmic Pricing Disclosure Act

Violation Types

Entity Details

Entity

Instacart

Industry

Food Delivery

Official Sources

Source Evidence

Entity Name
"Instacart"
Event Date
"January 8, 2026"
Jurisdiction
"New York Attorney General Letitia James"
Event Type
"sent a letter to online grocery shopping platform Instacart demanding more information"
Laws Cited
"New York’s recent Algorithmic Pricing Disclosure Act"
Violation Types
"algorithmic pricing, also known as surveillance pricing"

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