"The FTC lawsuit claimed that Instacart engaged in several deceptive methods, including: Falsely advertising "free delivery" to customers' first order when they actually needed to pay a service fee as much as 15 percent; Falsely advertising a "100 percent satisfaction guarantee," implying full refunds that Instacart didn't offer; Failing to disclose the terms of Instacart+ membership enrollment, such as that consumers would be charged at the end of their free trials."
"Instacart misled consumers by advertising free delivery services - and then charging consumers to have groceries delivered - and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program," director of the FTC's Bureau of Consumer Protection, Christopher Mufarrige, stated in the FTC's press release. "The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms."
Instacart will pay $60 million in consumer refunds to settle an FTC lawsuit alleging deceptive practices. The FTC alleged that Instacart falsely advertised "free delivery" on customers' first orders while charging service fees up to 15 percent, falsely advertised a "100 percent satisfaction guarantee" without offering full refunds, and failed to disclose automatic enrollment and billing at the end of Instacart+ free trials. Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said Instacart misled consumers and emphasized monitoring online delivery services for transparent pricing and delivery terms. Instacart denied wrongdoing and called the FTC inquiry fundamentally flawed.
Read at Mashable
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