"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."
"The FTC said Instacart also advertises a "100% satisfaction guarantee," but customers who experience late deliveries or unprofessional service are typically only offered a small credit that can be used toward a future order and not a refund. "The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms," said Christopher Mufarrige, the director of the FTC's Bureau of Consumer Protection."
Instacart will pay $60 million in customer refunds under an FTC settlement addressing allegedly 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 an order. The FTC found that customers who enrolled in free trials were charged membership fees without receiving membership benefits or refunds, and that the Instacart+ membership provides free deliveries for $99 per year. The FTC found that the advertised 100% satisfaction guarantee typically resulted only in small credits rather than refunds. Instacart denied wrongdoing but settled and its shares fell 1.5%.
Read at SFGATE
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