"The FTC said Thursday that Instacart has been falsely advertising free deliveries. The San Francisco-based company isn't clearly disclosing service fees, which add as much as 15% to an order and must be paid for customers to receive their groceries, the FTC said. Instacart has also failed to clearly disclose that customers who enroll in a free trial for its Instacart+ program will be charged membership fees at the end of the trial."
"The FTC said Instacart also advertises a "100% satisfaction guarantee," but customers who experience late deliveries or unprofessional service are typically only offered a small credit that can be used toward a future order and not a refund. "The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms," said Christopher Mufarrige, the director of the FTC's Bureau of Consumer Protection."
Instacart agreed to pay $60 million in customer refunds under an FTC settlement over alleged deceptive practices. The FTC alleges Instacart falsely advertised free deliveries while not clearly disclosing service fees that can add up to 15% of an order. The company also failed to disclose that free trials of Instacart+ convert to paid memberships, with hundreds of thousands charged without receiving benefits or refunds. Instacart's "100% satisfaction guarantee" often resulted in small future-order credits rather than refunds. Instacart denied wrongdoing but settled to move forward; shares fell nearly 2% after-hours.
Read at WSB-TV Channel 2 - Atlanta
Unable to calculate read time
Collection
[
|
...
]