News - Instacart Settles $60M Refund for Misleading Practices

In a significant development, grocery delivery service Instacart has agreed to pay $60 million in consumer refunds following a settlement with the Federal Trade Commission (FTC). The settlement addresses allegations that Instacart misled consumers through its advertising and subscription practices. The FTC accused the company of falsely promoting free delivery on initial orders, not providing full refunds, and enrolling consumers in paid subscriptions without transparent consent. According to the FTC's assertions, Instacart advertised a "free delivery" service but included undisclosed mandatory fees, sometimes reaching 15% of the order total. The company also allegedly misrepresented its "100% satisfaction guarantee," offering only minor credits instead of full refunds. Additionally, it reportedly enrolled customers into its Instacart+ subscription service without clearly disclosing the automatic charges that would follow a free trial. These practices allegedly resulted in countless consumers being unfairly billed without enjoying the promised benefits. Despite these claims, Instacart refutes any wrongdoing. A company spokesperson stated their commitment to transparency and the integrity of their services, asserting that they consistently provide clear marketing, transparent pricing, easy cancellations, and generous refund policies. The settlement prohibits Instacart from continuing such misleading practices and mandates them to obtain explicit consumer consent before initiating automatic subscription renewals. This move underscores the FTC's commitment to enforcing consumer protection laws and reflects the importance of transparency in consumer-business relationships in the increasingly digital marketplace. Daniella Genovese from FOX Business contributed additional insights to this report.