"The Federal Trade Commission announced that Instacart will pay $60 million in refunds to consumers as part of a settlement resolving allegations of deceptive practices that increased grocery shopping costs. The FTC's investigation revealed what the agency called multiple deceptive tactics used by the company, including misleading claims of "free delivery" that actually required consumers to pay service fees as high as 15%."
"Furthermore, the FTC alleged that Instacart's satisfaction guarantee was misleading. Consumers who experienced issues such as late deliveries were often provided only small credits for future orders instead of full refunds, which they were entitled to. Additional concerns revolved around the process of enrolling in Instacart+, the company's subscription service. The FTC said many consumers were charged membership fees without their informed consent, often dismissing the restrictive refund policy during the sign-up process, which was not clearly disclosed."
Instacart will pay $60 million in consumer refunds under a proposed settlement with the Federal Trade Commission and must cease misleading advertising practices. The FTC found multiple deceptive tactics, including claims of "free delivery" that required consumers to pay service fees up to 15% and a satisfaction guarantee that issued small credits instead of full refunds for service failures. The FTC also alleged consumers were enrolled in Instacart+ and charged membership fees without informed consent, with sign-up processes downplaying restrictive refund policies. Instacart states it itemizes delivery and service fees and says membership cancellation is straightforward.
Read at WSOC TV
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