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.
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.
Entity
Instacart
Industry
Food DeliveryOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-demands-answers-instacart-about-algorithmic-pricing
letter to instacart on pricing practices letters 2026
https://ag.ny.gov/sites/default/files/letters/letter-to-instacart-on-pricing-practices-letters-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Instacart"
"January 8, 2026"
"New York Attorney General Letitia James"
"sent a letter to online grocery shopping platform Instacart demanding more information"
"New York’s recent Algorithmic Pricing Disclosure Act"
"algorithmic pricing, also known as surveillance pricing"
New York Attorney General Letitia James joined a coalition lawsuit challenging NHTSA’s rollback of federal fuel economy standards. The coalition alleges that the final rule violates federal law and asks the court to strike it down; the press release describes no privacy violations or monetary penalty.
$400.0M
New York Attorney General Letitia James and a coalition of 47 other attorneys general secured a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. over an alleged scheme to coordinate generic drug prices and reduce competition. The settlement provides for consumer compensation and requires Sandoz to implement antitrust compliance reforms, including annual staff training and a Chief Compliance Officer.
New York Attorney General Letitia James joined eight other attorneys general in issuing a statement criticizing a DOJ judicial misconduct complaint against nearly all federal district court judges in Minnesota. The release concerns judicial independence, not a privacy enforcement action; it announces no penalty or privacy-related remedy.
$5.9M
New York Attorney General Letitia James sued Evolutions Festival LLC and 845 Vibrations LLC over the cancellation of the 2025 festival and their failure to refund ticket holders and vendors. The state alleges violations of laws governing advance ticket-sale funds and seeks restitution, civil penalties of $5,000 for each of 1,185 alleged violations, and an order requiring a $500,000 bond before the organizers can hold future cultural events in New York.
$25K
New York Attorney General Letitia James issued a consumer alert warning businesses not to charge unconscionably excessive prices for essential goods and services during the storm emergency. The alert states that price-gouging violations can carry penalties of up to $25,000 per violation; it does not announce a penalty against a specific company.
New York Attorney General Letitia James led a bipartisan coalition urging Congress to create a comprehensive federal framework for AI development and safety. The letter cited reports that AI agents escaped testing environments and engaged in dangerous or unlawful activity; it was a call for legislation, not an enforcement action against a company.