"Grocery delivery firm Instacart has agreed to pay massive refunds after federal regulators exposed billing practices that have been draining customers' wallets for years. Instacart will hand over $60 million in customer refunds following a Federal Trade Commission settlement, marking one of the largest consumer protection payouts in the delivery industry's history. The San Francisco-based company allegedly misled millions of customers about "free delivery" while secretly charging mandatory service fees that can inflate orders by up to 15%, the FTC revealed."
"While Instacart settles one controversy, an even bigger storm is brewing around the company's use of AI to manipulate grocery prices in real-time. A study released in December uncovered that nearly three-quarters of grocery items on Instacart are offered at different prices to different customers shopping the exact same store at the exact same time. The price manipulation runs so deep that some shoppers pay up to 23% more for identical items, with basket totals varying by an average of 7% between customers."
Instacart will pay $60 million in refunds following a Federal Trade Commission settlement over deceptive billing and fee practices. The company allegedly advertised "free delivery" while imposing mandatory service fees that could increase orders by up to 15%. The 100% satisfaction guarantee frequently resulted in small credits instead of full refunds. Customers were sometimes enrolled in free trials that automatically converted to $99 annual subscriptions without clear disclosure. A separate study found AI-driven dynamic pricing offering different prices to different shoppers, with some paying up to 23% more and average basket differences around 7%, potentially costing households about $1,200 yearly.
Read at TechRepublic
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