"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 a settlement with the FTC over alleged deceptive practices. The FTC found Instacart falsely advertised free deliveries and failed to clearly disclose service fees that can add up to 15% of an order. The company also did not sufficiently disclose that free trials of Instacart+ convert into paid memberships, leaving many customers charged without benefits or refunds. The advertised "100% satisfaction guarantee" often resulted only in small future-order credits rather than refunds for poor service. Instacart denied wrongdoing but settled and its shares dipped nearly 2%.
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