Instacart to pay $60 million in consumer refunds to settle FTC lawsuit

Instacart has agreed to a $60 million settlement with the Federal Trade Commission (FTC) to resolve claims of deceptive advertising and unfair subscription practices. The FTC alleged that Instacart misled consumers with false “free delivery” claims, as service fees of up to 15% were not clearly disclosed. Additionally, the company’s 100% satisfaction guarantee was found to be misleading, with customers often receiving small credits instead of full refunds for issues like late deliveries. The FTC also claimed Instacart failed to adequately disclose the terms of its Instacart+ membership, automatically enrolling consumers into paid subscriptions without their explicit consent and charging them without providing benefits or refunds.

As part of the settlement, Instacart will provide refunds to customers who were improperly charged for Instacart+ memberships. The company is also required to cease its alleged deceptive practices. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that Instacart “misled consumers by advertising free delivery services — and then charging consumers to have groceries delivered.”

Instacart denies the allegations but stated that the settlement allows them to “move forward and remain focused on delivering value” to its customers. The company maintains it provides “straightforward marketing, transparent pricing and fees,” and complies with all laws.

(Source：Usa Today)