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Instacart will pay $60 million in refunds to settle allegations by the U.S. Federal Trade Commission that it deceived consumers with false advertising. The federal agency alleged Instacart misled consumers with unlawful tactics, causing them to pay higher fees while also denying refunds.<\/p>\n
The Federal Trade Commission (FTC) stated Instacart\u2019s \u2018free delivery\u2019 claims are misleading because customers are still required to pay a mandatory service fee, which can add up to 15% to their total order.<\/p>\n
The agency also said the delivery platform\u2019s \u201c100% satisfaction guarantee\u201d 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.<\/p>\n
Additionally, Instacart hid the refund option from the \u201cself-service\u201d 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.<\/p>\n
Instacart also failed to clearly disclose terms relating to the Instacart+ membership enrollment process, the agency said. 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. These consumers will be receiving refunds as a result of the settlement, the FTC said.<\/p>\n
\u201cThe FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,\u201d \u00a0said Christopher Mufarrige, Director of the FTC\u2019s Bureau of Consumer Protection, in a statement<\/a>.<\/p>\n Instacart acknowledged the settlement in a blog post<\/a> and denied \u201cany allegations of wrongdoing.\u201d The company also said it believes \u201cthe foundation of the FTC\u2019s inquiry was fundamentally flawed.\u201d<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> The settlement comes as Instacart is currently under fire<\/a> over a recent study<\/a> that revealed its AI-powered pricing tool is causing some customers to receive different prices for the same items at the same stores. Instacart responded to the controversy by stating that retailers determine their own prices, and any pricing tests conducted through its AI tool are random and not influenced by user data. Reuters<\/a> reported on Wednesday the FTC has begun an investigation<\/a> into the delivery platform\u2019s AI pricing tool.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n