Instacart to pay $60 million to settle FTC claims it deceived customers

"The federal agency alleged that Instacart used deceptive tactics in its subscription signup and "satisfaction guarantee" advertising that caused consumers to pay more in fees, and prevented them from securing refunds. For example, the FTC said Instacart falsely dangled promises of "free delivery" to consumers on their first order, while shoppers were still required to pay a mandatory service fee to get their groceries delivered. The FTC also said that Instacart falsely advertised full refunds for users who had problems with their order."

"In a blog post, Instacart acknowledged the FTC settlement but denied "any allegations of wrongdoing by the agency." The grocery delivery platform said it uses "straightforward marketing, transparent pricing and fees, clear terms, easy cancellation, and generous refund policies" that comply with the law. "This settlement allows us to move forward and remain focused on what's important to our company: delivering value for customers, shoppers, and retail and brand partners in the communities we serve," an Instacart spokesperson said."

Instacart will pay $60 million to resolve Federal Trade Commission allegations that it misled users with false advertising and used unlawful subscription enrollment tactics. The FTC alleged deceptive subscription signup and "satisfaction guarantee" advertising caused consumers to pay higher fees and prevented them from securing refunds. The agency cited promises of "free delivery" while customers were still charged mandatory service fees, and claims of full refunds that were not provided. Instacart denied wrongdoing, asserting transparent pricing, easy cancellation, and generous refunds. A separate FTC probe is examining algorithmic pricing that led to different prices for identical items.

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