Instacart to pay $60M to settle FTC claims it deceived consumers | TechCrunch

"The Federal Trade Commission (FTC) stated Instacart's 'free delivery' claims are misleading because customers are still required to pay a mandatory service fee, which can add up to 15% to their total order. The agency also said the delivery platform's "100% satisfaction guarantee" promise is false because it implies it will provide full refunds when consumers are not fully satisfied with their orders, which is typically not the case when people receive late deliveries or unprofessional service."

"Additionally, Instacart hid the refund option from the "self-service" menu that consumers use to report problems with their orders, making people believe they could only get a credit toward a future order rather than a refund, the FTC claimed. The sign-up process for the free trial of the subscription service did not disclose consumers would be charged once the trial ended, which allowed Instacart to charge people without their informed consent."

Instacart will pay $60 million in refunds to resolve FTC allegations that it deceived consumers with false advertising and unlawful tactics. The FTC found that 'free delivery' claims were misleading because customers still paid a mandatory service fee that can add up to 15% of their order. The agency found the '100% satisfaction guarantee' promise misleading because full refunds are typically not provided for late deliveries or unprofessional service. Instacart hid the refund option in the self-service menu, steering consumers toward credits instead of refunds. The FTC also found unclear Instacart+ free trial terms that led to undisclosed charges. Instacart denied wrongdoing.

Read at TechCrunch