Instacart settles with FTC over deceptive practices but faces separate investigation into prices

"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 hundreds of thousands of customers have been charged but have received no benefits from memberships or refunds."

"Instacart denied the FTC's allegations of wrongdoing Thursday but said it reached a settlement in order to move forward and focus on its business. "Instacart is proud to offer a transparent, affordable and consumer-friendly service. We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation and generous refund policies - all in full compliance with the law and exceeding industry norms," the company said in a statement."

Instacart will pay $60 million in customer refunds under a settlement with the Federal Trade Commission over alleged deceptive practices. The FTC found that Instacart falsely advertised free deliveries and failed to clearly disclose service fees that can add as much as 15% to orders and must be paid for delivery. The FTC also found that customers who enrolled in free trials for Instacart+ were charged membership fees at the end of the trial, with hundreds of thousands charged but receiving no membership benefits or refunds. Instacart's "100% satisfaction guarantee" often resulted in small credits rather than refunds. Instacart denied wrongdoing but settled and faces a separate FTC probe into pricing practices.

Read at San Diego Union-Tribune