"In a complaint filed on Thursday, the FTC claimed Instacart engaged in multiple deceptive tactics that raised costs for customers, including failing to provide advertised refunds and falsely advertising "free delivery" while still charging mandatory service fees that added up to 15 percent to order costs. The FTC said Instacart also advertised a "100% satisfaction guarantee," but typically offered only small credits toward future orders rather than full refunds to customers experiencing problems with deliveries or service. The company allegedly hid refund options from "self-service" menus, leading customers to believe credits were their only option."
"The FTC further alleged that Instacart's free-trial enrollment process for its Instacart+ membership program failed to adequately disclose that consumers would be automatically charged at the end of the trial. As a result, hundreds of thousands of consumers were charged membership fees without receiving benefits or obtaining refunds, the FTC added. 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."
Instacart agreed to refund $60 million to resolve Federal Trade Commission allegations that it misled customers and unlawfully enrolled them in paid subscriptions. Instacart partners with over 1,800 retailers and serves millions of customers across nearly 100,000 North American stores, and its platform also involves roughly 600,000 independent shoppers. The FTC alleged deceptive practices including failing to provide advertised refunds, advertising "free delivery" while charging mandatory service fees up to 15 percent, hiding refund options behind menus, and inadequately disclosing automatic charges after free trials, resulting in widespread improper subscription charges.
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