Shares of grocery delivery service Instacart dropped 11% in extended trading on Wednesday, following a report that said the U.S. Federal Trade Commission has begun an investigation into the company’s pricing practices.
The FTC sent a civil investigative demand to Instacart, Reuters reported, citing unnamed people.
A study released last week showed that prices for the same products in the same supermarkets that work with Instacart can vary by around 7%, which can result in over $1,000 in extra annual costs. Instacart responded that retailers determine prices listed in the app.
The FTC and Instacart did not immediately respond to requests for comment.
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