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Instacart said Monday that it would halt the use of an AI-powered tool that allowed retailers to charge customers different prices for identical items on the grocery delivery platform.
“Effective immediately, Instacart is ending all item price tests on our platform,” an Instacart spokesperson told CBS News in an email statement. “Retailers will no longer be able to use Eversight technology to run item price tests on Instacart.”
The announcement comes after a recent investigation by Consumer Reports and Groundwork Collaborative, an nonprofit advocacy group, found evidence that retailers such as Albertsons, Costco, Kroger, Safeway, Sprouts Farmers Market and Target were testing the AI pricing system.
The organizations based their findings on data gathered from more than 400 volunteers during online shopping sessions in September. During one test conducted for a Safeway in Seattle, the price for a box of Wheat Thins varied by as much as 23%.
Retailers will continue to set their own prices on the delivery website, and they may still offer different prices at different brick-and-mortar locations, Instacart said Monday in a blog post.
Instacart acquired Eversight, an AI-enabled pricing platform, in 2022, and began offering pricing software to retail companies in 2023.
Instacart claims the AI pricing tests did not include customers’ personal, demographic, or user-level behavioral characteristics. The decision to end the use of its pricing tool was made in response to feedback from Instacart customers, a company spokesperson said Monday.
Reuters reported on Dec. 17 that the Federal Trade Commission was probing Instacart over its AI pricing tests. The FTC decined to comment on the report, but said in a statement that it was “disturbed by what we have read in the press about Instacart’s alleged pricing practices.”
The FTC did not immediately respond to a request for comment on Instacart shelving its AI pricing technology.
In a separate case last week, Instacart agreed to pay $60 million in customer refunds to settle federal allegations of deceptive practices after the FTC accused Instacart of falsely advertising free deliveries and not clearly disclosing service fees.
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Instacart has it will be ending price testing on its platform. This comes after a published earlier this month revealed pricing experiments that led to some customers seeing higher prices than others and the last week it would be investigating the grocery delivery app.
“Effective immediately, Instacart is ending all item price tests on our platform. Retailers will no longer be able to use Eversight technology to run item price tests on Instacart,” an Instacart spokesperson shared with Engadget. The blog post called out “misconceptions and misinformation,” maintaining that these price experiments were never the result of dynamic pricing and were never based on any personal or behavioral information about shoppers.
In an responding to the study’s allegations, Instacart said pricing changes were a “form of short-term, randomized A/B testing.” The post referred to this process as “common in the grocery industry” and continued to paint the practice as a way to “invest in lower prices.” It also highlighted that Instacart does not set the prices on its platform, which are set by retailers listed on the app.
The company made clear that its retail partners will continue to set their own prices on the platform, which may vary by location just as they do in brick-and-mortar stores, but that Instacart will no longer support any item price testing services.
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Andre Revilla
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Instacart has agreed to refund $60 million to customers to settle allegations that the grocery shopping service engaged in deceptive marketing and billing practices, the Federal Trade Commission said Thursday.
The agency alleged in a lawsuit that Instacart charged hidden fees and refused to issue refunds, raising the cost of groceries for consumers and harming shoppers.
“Instacart misled consumers by advertising free delivery services — and then charging consumers to have groceries delivered — and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
The FTC said Instacart’s promise of free delivery to shoppers placing an order through the platform for the first time amounted to false advertising because the offer required that they pay a “service fee” to receive their groceries.
Instacart also failed to stand behind its “100% satisfaction guarantee” because it implied that it offered full refunds for dissatisfied customers, which the company failed to provide, regulators allege. Instead, customers whose orders were late or incomplete only received a small credit to use on a future order.
Instacart denied the FTC’s allegations, telling CBS News in a statement that the company provides “straightforward marketing, transparent pricing and fees, clear terms, easy cancellation, and generous refund policies — all in full compliance with the law and exceeding industry norms.”
Additionally, Instacart charged consumers for Instacart+ subscriptions, which offer perks like free or low-cost delivery, without their consent, the FTC said.
“We flatly deny any allegations of wrongdoing by the Federal Trade Commission, and we stand firmly behind the integrity and transparency of our programs. This settlement allows us to move forward and remain focused on delivering value for our customers, shoppers, and retail and brand partners in the communities we serve,” an Instacart spokesperson said in a statement.
Under the proposed settlement, the grocery service is banned from misrepresenting its delivery service costs and satisfaction guarantees. The company must also obtain consent from shoppers before they are enrolled in any Instacart subscriptions.
Separately, the FTC this week also expressed concern after an investigation by Consumer Reports and Groundwork Collaborative, a progressive advocacy group, said the company is testing technology that can result in different consumers paying significantly different prices for the same grocery items.
Instacart told CBS News that 10 of its retail partners are testing that approach to pricing, describing such practices as a standard way stores assess customer preferences.
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Instacart will pay $60 million in refunds to settle allegations by the U.S. Federal Trade Commission that it deceived consumers with false advertising. The federal agency alleged Instacart misled consumers with unlawful tactics, causing them to pay higher fees while also denying refunds.
The Federal Trade Commission (FTC) stated Instacart’s ‘free delivery’ claims are misleading because customers are still required to pay a mandatory service fee, which can add up to 15% to their total order.
The agency also said the delivery platform’s “100% satisfaction guarantee” promise is false because it implies it will provide full refunds when consumers are not fully satisfied with their orders, which is typically not the case when people receive late deliveries or unprofessional service.
Additionally, Instacart hid the refund option from the “self-service” menu that consumers use to report problems with their orders, making people believe they could only get a credit toward a future order rather than a refund, the FTC claimed.
Instacart also failed to clearly disclose terms relating to the Instacart+ membership enrollment process, the agency said. The sign-up process for the free trial of the subscription service did not disclose consumers would be charged once the trial ended, which allowed Instacart to charge people without their informed consent. These consumers will be receiving refunds as a result of the settlement, the FTC said.
“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a statement.
Instacart acknowledged the settlement in a blog post and denied “any allegations of wrongdoing.” The company also said it believes “the foundation of the FTC’s inquiry was fundamentally flawed.”
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The settlement comes as Instacart is currently under fire over a recent study that revealed its AI-powered pricing tool is causing some customers to receive different prices for the same items at the same stores. Instacart responded to the controversy by stating that retailers determine their own prices, and any pricing tests conducted through its AI tool are random and not influenced by user data. Reuters reported on Wednesday the FTC has begun an investigation into the delivery platform’s AI pricing tool.
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Aisha Malik
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According to Reuters, Instacart is currently getting the regulatory equivalent of a throat-clearing from the FTC, which has sent the grocery delivery platform a civil investigative demand regarding its AI-powered pricing tool, Eversight. Put another way, the agency wants to know why some people are paying substantially more for their organic granola than others.
The issue came to light after a study revealed that shoppers are seeing fairly different prices for identical groceries from the same stores — up to 23% higher prices in some cases. Instacart says these price tests were randomized, not ties to an algorithm that targets customers based on their browsing history. But when people are already anxious about affording eggs, that distinction probably doesn’t mean much.
Dynamic pricing isn’t new or necessarily nefarious. Harvard Business School will tell you it’s how digital platforms stay competitive. Airlines use it, hotels use it, Uber famously uses it. Companies argue that it helps balance supply and demand, maximizes profitability, and creates win-win scenarios.
But there’s a difference between paying surge pricing for a ride home from the bar and paying extra for groceries (food isn’t optional). So while the investigation doesn’t prove wrongdoing, it’s hardly shocking that the FTC — which has investigated data-driven pricing strategies by other companies — is reportedly asking questions. In an economy where everyone’s feeling squeezed, AI-driven price testing of kitchen essentials was bound to attract attention.
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Connie Loizos
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THE BLUEPRINT:
Consumer Reports alleges Instacart uses AI to charge shoppers different prices for the same items
Sen. Chuck Schumer urges the FTC to investigate Instacart’s pricing practices
Grocery prices reportedly varied by as much as 23 percent between shoppers
Instacart says retailers control pricing and randomized pricing tests follow “strict guardrails”
An investigation by Consumer Reports and the Groundwork Collaborative alleges that Instacart uses artificial intelligence to charge different shoppers on Long Island and elsewhere different prices for the same items. Citing those findings, U.S. Sen. Charles Schumer is urging the Federal Trade Commission to intervene.
“When a shopper fills their grocery cart whether in real life or digitally, they should trust that they are being treated fairly and that prices are transparent,” Schumer said in a news release.
“What we are seeing more and more of is that companies like Instacart are using artificial intelligence to rip off consumers by charging different shoppers different prices for the same exact items,” he said.
“This is jacking up grocery costs across New York City, Long Island, and across the nation,” he added. “So, today, I am sounding the alarm on this predatory practice and demanding the federal government take new action to protect families from this shakedown pricing.”
The investigation comes at a time when consumers are grappling with rising grocery costs, with 71 percent saying they are spending more this year than last year, according to an ABC News/Washington Post/Ipsos poll published in November.
Last week, President Donald Trump issued an executive order establishing task forces to examine potential price-fixing across the food supply chain.
Meanwhile, the Consumer Report and Groundwork Collaborative investigation release last week alleged that in some instances grocery prices varied by as much as 23 percent from shopper to shopper.
Instacart, meanwhile, said in a Dec. 9 blog that it is “doubling down on affordability and convenience.”
The company said in the blog that
“While we have made real progress working with our retail partners to drive affordability through loyalty integrations, same-as-in-store pricing, and more – retail partners on our platform control their pricing strategies. Some choose to apply online markups to help offset the cost of providing same-day delivery to customers. To ensure customers can make the most informed choices when buying groceries from their favorite retailers, we display every retailer’s pricing policy on their Instacart storefront so customers know when prices may differ from in-store and can easily compare across retailers.
Additionally, just as retailers have long tested prices in physical stores to understand what resonates with customers, a small subset of our retail partners – 10 U.S. retail partners that already choose to apply markups – use Instacart’s Eversight technology to run limited online pricing tests. These short-term, randomized tests help retail partners understand category-level price sensitivity so they can sustainably invest in lower prices where consumers care most. For example, as a result of these tests, some consumers may see slightly lower prices on essentials like milk or bread, and slightly higher prices on items like specialty snacks or craft beverages.”
The company added that “these short-term, randomized tests follow strict guardrails.”
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Adina Genn
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Montgomery County, Maryland, is expanding a program that helps families in need who don’t qualify for federal food assistance such as SNAP.
For the last year, 500 working families in Montgomery County, Maryland, who didn’t qualify for federal food assistance, but were “on the cusp of hunger,” got needed help from MC Groceries.
Now that number is expanding to 700 families, according to Heather Bruskin, the director of the Montgomery County Office of Food Systems Resilience.
“These are working families that make too much to be eligible for federal benefit programs like SNAP or WIC, but they don’t make enough to cover their basic cost of living,” said Bruskin, referring to the federal Supplemental Nutrition Assistance Program and the Special Supplemental Nutrition Program for Women, Infants and Children.
Bruskin explained how the recently expanded program works.
“MC Groceries gives qualifying families $100 per child per month to shop on the Instacart platform,” Bruskin said.
She said Instacart, which offers food delivery, is part of the approach to food access.
“A lot of these lower income families have transportation challenges,” Bruskin said. “They’re shopping by getting rides from friends, or walking or taking public transportation to the grocery store.”
Data from the program tracks how the money is spent, according to Bruskin.
“The top two purchased items through MC Groceries were fresh fruits and fresh vegetables,” she said.
Following closely behind, she said, were meat and dairy items.
That’s exactly how Mwanamisi — an MC Groceries participant who spoke to WTOP on the condition that her first name only would be used — spends the extra food dollars. Avocados and fresh fruits such as strawberries were added to her grocery cart. Something she said her three young children noticed right away.
Her husband worked in the public health sector — hit by layoffs in the past year — and Mwanamisi said he’s been unable to find work since losing his job in February. That meant moving to cut all unnecessary expenses, and skipping higher priced groceries, often substituting legumes as a protein source rather than meat.
Thanks to the supplement for food expenses, Mwanamisi said she can occasionally add the traditional — and favorite — protein source to family meals: goat meat.
“Which I love and which my kids love as well,” Mwanamisi said.
With the cushion of the MC Groceries money, Mwanamisi said, there’s less stress around providing nutritious meals.
“Like before, if you leave even a tiny bit of milk in your cup, I would be on your case,” she said.
With a slight smile in her voice, she said, “Now I am finding that I am shouting less.”
She said she appreciates being able to add more items that are “healthy and good for growing kids.”
“We are very so grateful for MC Groceries,” Mwanamisi said.
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© 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.
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Kate Ryan
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Starting today, United MileagePlus members can earn miles and unlock special offers when they use Instacart, making it easier to enjoy the convenience of online grocery delivery at home or on the road.
United MileagePlus members get $0 delivery fees on orders placed right before, during or shortly after domestic flights. MileagePlus members who are new to Instacart can also enjoy 5,000 bonus MileagePlus bonus miles when they sign up and complete four orders, and can earn an additional 5,000 miles if they enroll in an Instacart+ membership.
With the Instacart collaboration, United MileagePlus members can access benefits like:
Chase United cardholders also receive free Instacart+ membership and up to $20 monthly credits.
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DDG
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Instacart and Mastercard have teamed up to offer eligible US Mastercard credit or debit card holders 3 free months of Instacart+ and $10 off their 2nd qualifying order each month. This offer begins September 1, 2025, and runs through January 31, 2027.
It looks like you can NOT add an extra 3 months of Instacart+ to an existing Instacart+ subscription.
To qualify for 3 free months of Instacart+, you must:
To qualify for the monthly $10 offer, you must—
Qualifying orders must be paid for with the same card type that was enrolled. For example, if you enrolled an eligible Mastercard credit card, both qualifying orders must be paid for with any eligible Mastercard credit card (the eligible Mastercard doesn’t necessarily have to be the one you enrolled).
The $10 off automatically applies at checkout, regardless of other active promotions. The $10 off doesn’t apply to any alcohol or Rx items in your order and does not apply to restaurant orders.
The discount expires at the end of each calendar month in which it was earned if unused.
To redeem the 3 free months of Instacart+—
To receive the $10 off monthly offer, you must place your first order with an eligible US Mastercard® credit or debit card. You’ll receive $10 off automatically to your Instacart account after the order is delivered.
Once you place a second order with an eligible Mastercard, the $10 off automatically applies at checkout. Note, this coupon doesn’t apply to any alcohol or Rx items in your order.
HT: DoC
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DDG
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Like the rest of the country, D.C.-area candy-lovers are buying a chocolaty and peanut buttery treat for the spooky holiday, according to a study from Instacart.
What is the most popular Halloween candy for in the D.C. area?
Like the rest of the country, D.C.-area candy-lovers are buying a chocolaty and peanut buttery treat for the spooky holiday, according to a study from Instacart.
It showed half the U.S. is going to be buying Halloween candy, and the most common kind sold through the grocery delivery service is Reese’s Peanut Butter Cups.
D.C., Maryland and Virginia follow the national trend. Only a few Western states prefer M & M’s.
Meanwhile, the survey showed that Marylanders buy Sour Patch Kids more than the rest of the country. Virginia loves Hershey’s milk chocolate around Halloween compared to the rest of the country. For D.C., the unique favorite treat is Crunch Bars.
But Washingtonians aren’t huge into candy. Last year, they bought the third least amount of candy for Halloween from across the country. If you are looking to really fill that trick-or-treat pumpkin bucket, get a flight to Utah, which buys the most Halloween candy.
And if you haven’t bought that candy to hand out yet this year, don’t worry, you are not alone. About one-fifth of Americans wait until Halloween to actually buy candy.
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© 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.
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We wrote last year about the partnership between Instacart and Mastercard offering Mastercard cardholders $10 off their second Instacart order per month + 2 free months of Instacart+. Apparently they now have a new offer for business Mastercard cardholders:
Nice savings for those who use Instacart. Note: Customers who had an active Instacart+ membership on or after Oct. 1, 2023 are not eligible for this offer.
Hat tip to reader I.S.
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Chuck
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Pepper app is offering the following deals for August 16 – 18:
The standard Pepper points will be instantly available and the bonus Pepper points will be awarded on 8/31 for Instacart and 9/2 for the other brands mentioned.
Myself and many others are locked out of Pepper due to password issues – they’re apparently experiencing technical difficulties for the past few days.
Reports are that Amex Business Gold to earn 4x if it’s one of your top two categories. And reports are that it counts as Online Shopping for BofA cards and Blue Cash card and ShopYourWay card. And it counts as Computer Software category for BofA Customized Cash Rewards cards and for 1.5x on the Business Platinum card.
15% off Instacart is pretty good, especially if you combine it with a credit bonus category. That said, the bonus points won’t be available for two weeks which makes the deals somewhat less interesting.
My thanks if you enter my signup code 584255 during the initial signup process. Those who signup with a referral code get double Pepper points on all purchases for 15 days. (Not clear whether these bonus deals will be doubled.) No referral links or references in the comments below, please.
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Chuck
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Chase is targeting some cardholders with a new offer that can save you 10% on Instacart purchases. You can also save another 20% with PayPal and these offers should stack. Check out more details below.
Chase Offers are available on Chase credit cards and debit cards. With these offers, you usually get cashback when you use your eligible Chase card to shop at a participating store. You can see your offers in the Chase app or in your account online. Here are a few things worth noting about these offers:
Some PayPal users can save 20% on Instacart purchases. I’m not sure with the maximum credit is. Here’s how to find this offer:
This is a good offer for savings on Instacart and it seems widely available for most cardholders. Keep in mind that Chase ended its popular Instacart perks for most cardholders, but hopefully you took advantage of those benefits and still have Instacart+.
Check your accounts at Chase and other banks and add the offer on as many cards as you have it. And you can stack this offer with a another 20% discount from PayPal if you are targeted.
You can find more Chase Offers here.
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DDG
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🔃 Update: This offer is ending at the end on July. Must redeem by July 31, 2024. (HT: DoC)
Starting Monday, August 1, Chase Sapphire and Chase Freedom cardmembers will be eligible to receive statement credits on Instacart purchases once they activate their Instacart+ membership at Instacart.com/Chase. This is in addition to the previously announced Instacart+ membership benefit that offers up to 12 months of free deliveries when you sign up with an eligible Chase credit card. Instacart+ benefits include free delivery on orders over a certain size; reduced Instacart service fees; credit back on eligible Pickup orders; and exclusive benefits.
Additional details on the new statement credits, plus the previously announced membership benefits, available for each card are below:
There’s some bad news for those who have already activated their free Instacart+ membership through Chase. The credits are only for those who activate the Instacart+ membership starting today. Enrollment for the offer expires on July 31, 2024.
This is a great benefit, especially for Chase Sapphire Reserve cardholders who can now get free Instacart+ membership, plus up to $180 in Instacart credits for one year.
You can also find more Instacart deals here.
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DDG
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Update 7/26/24: It seems this $15/$10 monthly/quarterly credit is ending on July 31st. Be sure to use up your monthly Sapphire Reserve credit, as usual. Also be sure to use up your quarterly Freedom and Sapphire credits which reset on July 1st, if you have not yet used them.
This is an interesting new addition for the Sapphire Reserve card, especially. Someone who uses Instacart on a regular basis can see a full $180 benefit here. Even if not, maybe you can get some value out of this. Let us know if there’s any easy way to use this credit up.
Remember, again, to cancel your Instacart+ before the end of the free membership since you’ll get auto-charged the renewal fee. I’m not positive, but the monthly/quarterly credits will probably stop after cancelling the membership.
The $60 annual credits on the Sapphire cards and $40 on Freedom cards can hopefully be somewhat useful as well. Again, you’ll only get one or two quarters of credits when utilizing the free Instacart+ trial on these cards. After that the quarterly credits probably won’t continue.
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Chuck
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Sam’s Club is launching a gift card sale tomorrow, June 5th, with discounts on select brands. It includes:
Disclosure: This article contains affiliate links. If you take action (i.e. subscribe, make a purchase) after clicking a link, I may earn some beer 🍺money, which I promise to drink responsibly. When applicable, you should always go through shopping portals to earn cashback. But when that’s not an option, your support for the site is always greatly appreciated. Thank you for reading!
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DDG
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You can do this deal only once and buy a gift card with a denomination of between $25 and $750. Like always, you’ll get 5% back instantly toward a future purchase on all Pepper purchases.
Pepper always gives back 5% instantly toward your next purchase with their Pepper points system. New Pepper members who sign up using a referral link get 10% back for their first 15 days (half instantly available and the bonus half comes later). With this Instacart deal you’ll end up getting similar t0 15% off, and new Pepper members with end up with like 20% off.
Pepper has been on fire lately with some nice deals: Lowe’s at 10% back, then Uber at 15% back, then Amazon at 10% back, then Airbnb 10% back, and now Instacart at 10% instant discount. This Instacart deal is limited to one use with a $750 limit.
Use your Amex Business Gold to earn 4x if it’s one of your top two categories or use a card with a bonus for Online Shopping. Or just use your regular daily driver credit card.
We’ve written before how Costco.com and Samsclub.com are also offering 20% off Instacart gift cards.
My thanks if you enter my signup code 584255 during the initial signup process. No referral links or references in the comments below, please.
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Chuck
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Sam’s Club has a 20% discount on Instacart gift cards:
Disclosure: This article contains affiliate links. If you take action (i.e. subscribe, make a purchase) after clicking a link, I may earn some beer 🍺money, which I promise to drink responsibly. When applicable, you should always go through shopping portals to earn cashback. But when that’s not an option, your support for the site is always greatly appreciated. Thank you for reading!
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DDG
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