"Instacart has agreed to pay $60m in refunds to settle allegations brought by the United States Federal Trade Commission (FTC) that the online grocery delivery platform deceived consumers about its membership programme and free delivery offers. According to court documents filed in San Francisco on Thursday, Instacart's offer of free delivery for first orders was illusory because shoppers were charged other fees, the FTC alleged."
"The agency also accused Instacart of failing to adequately notify shoppers that their free trials of its Instacart+ subscription service would convert to paid memberships and of misleading consumers about its refund policy. The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms, said Christopher Mufarrige, who leads the FTC's consumer protection work."
Instacart agreed to pay $60 million in refunds to resolve FTC allegations that the platform deceived consumers about its membership programme and free-delivery offers. The FTC alleged that advertised free delivery for first orders was illusory because shoppers were charged other fees, and that Instacart failed to adequately notify shoppers that Instacart+ free trials would convert to paid memberships and misled consumers about its refund policy. The FTC said it is monitoring online delivery services to ensure transparent competition on price and delivery terms. Instacart denied wrongdoing but said the settlement allows the company to focus on shoppers and retailers. The company is also under scrutiny over pricing tests run through its Eversight tool; Instacart said retailers set prices and tests are random.
Read at www.aljazeera.com
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