Democrats draw line on dynamic pricing for essential goods
AI-enabled pricing experiment illustrates need for consumer protection
Pennsylvania House Democratic Caucus March 4, 2026 | 1:15 PM
HARRISBURG, March 4 – A report published in December revealed how Instacart utilized AI-enabled pricing experiments to allow grocery retailers to charge shoppers different prices for identical goods purchased at the same time. The PA House Majority Policy Committee and Senate Democratic Policy Committee convened a joint hearing on the topic and dynamic pricing on essential goods.
“Families across Pennsylvania are already stretched thin,” said Sen. Nick Pisciottano, who co-hosted the hearing and represents a portion of Allegheny County. “My bill would protect working families from unpredictable costs associated with AI-enabled pricing on essential goods. Companies should not be padding their profits on the backs of working families already struggling in a difficult economy.”
A recording of the hearing’s livestream can be found here. Pisciottano introduced his bill Prohibiting Dynamic Pricing on Essential Goods, or S.B. 1205, to put safeguards in place against the use of dynamic pricing on essential goods.
“When working families are counting every dollar, unpredictable prices are not innovation – they’re instability,” said Rep. Mary Isaacson, who co-hosted the hearing and represents portions of Philadelphia. “AI-enabled pricing puts consumers and working families at an extreme disadvantage, all in the name of corporate greed.”
Wednesday’s joint hearing featured testimony from Consumer Reports’ investigative reporter Derek Kravitz, who authored a December report on Instacart’s AI-enabled pricing experiments to inflate grocery bills, and George Slover, the senior counsel for competition at Center For Democracy & Technology.
“Hotels and airlines adopted dynamic pricing years ago, but applying dynamic pricing to essential goods is a dangerous precedent,” said Chairman of the House Majority Policy Committee Rep. Ryan Bizzarro, who represents portions of Erie County. “It weakens competitive pressure because consumers can no longer easily compare prices.”
Days after Consumer Reports’ investigation, Instacart announced it had halted the AI-enabled experiment that priced identical products as much as 23% higher for different customers.
“Today’s hearing underscored the importance of protecting consumers in the digital age, as emphasized by our testifiers,” said Chairman of the Senate Democratic Policy Committee Sen. Nick Miller, who represents portions of Lehigh and Northampton counties. “While dynamic pricing can offer benefits, many people experience it primarily as higher or inconsistent costs, especially for essential services they rely on every day. When companies use dynamic pricing responsibly, it can help consumers, but when used aggressively, it too often puts regular people at a disadvantage. Thank you to my state House and Senate colleagues for participating in our hearing today, and using it to continue fighting to lower costs and make life more affordable for families across the commonwealth.”
Information about this hearing and other House Majority Policy Committee hearings can be found at pahouse.com/policy. Photos to be used for publication can be found at Facebook.com/PADemPolicy.