Instacart Hit With $60M FTC Settlement Over Hidden Fees - TechRepublic

Instacart has agreed to a $60 million settlement with the Federal Trade Commission (FTC) following accusations of misleading customers with hidden fees. The FTC found that Instacart falsely advertised “free delivery” while secretly charging mandatory service fees, inflating orders by up to 15%. Additionally, the company’s “100% satisfaction guarantee” proved largely ineffective, offering minimal credits instead of full refunds for delivery issues, and customers were allegedly unknowingly enrolled in $99 annual subscriptions after free trials.

Simultaneously, Instacart faces scrutiny over its use of AI to dynamically price groceries, with a recent study revealing price variations of up to 23% for the same items between different customers. These price manipulations could cost families approximately $1,200 annually. Federal investigators are currently examining whether these AI pricing tools violate consumer protection laws, following Instacart’s $59 million acquisition of AI pricing firm Eversight.

Instacart denies wrongdoing, claiming its pricing variations are standard “A/B testing,” but faces increasing pressure from regulators and Congress for transparency. Representative Robert Garcia has demanded clarity on Instacart’s pricing algorithms, and the FTC is actively monitoring online delivery services to ensure fair competition.

(Source：Techrepublic)