"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 hundreds of thousands of customers have been charged but have received no benefits from memberships or refunds. Instacart+ offers members free deliveries on most orders for $99 per year."
""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 agreed to pay $60 million in customer refunds under an FTC settlement over alleged deceptive practices. The FTC found that Instacart falsely advertised free deliveries and failed to clearly disclose service fees that can add up to 15% of an order. The company did not adequately disclose that free trials for Instacart+ convert to paid memberships, and hundreds of thousands were charged without receiving benefits or refunds. Advertised "100% satisfaction guarantee" claims often resulted only in small future-order credits rather than refunds. Instacart denied wrongdoing but settled and emphasized its stated transparency and refund policies. Shares fell nearly 2% after the announcement.
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