FTC Settles with Instacart for $60 Million Refunds

The U.S. Federal Trade Commission announced on Thursday that Instacart has agreed to pay $60 million in refunds to resolve allegations that the grocery delivery company deceived consumers through misleading advertising and subscription practices. The settlement addresses claims that Instacart's tactics increased costs for shoppers and denied them rightful refunds, affecting millions of users across the United States.

According to the FTC, Instacart misrepresented its services in several ways. The company promoted free delivery for orders, but customers were charged service fees of up to 15 percent that were not applied to in-store pickup options, effectively disguising delivery costs. Additionally, Instacart's claim of a 100 percent satisfaction guarantee suggested full refunds for issues like late deliveries or poor service, yet the agency alleged that customers typically received only small credits toward future purchases. The FTC further contended that Instacart concealed full refund options in its self-service reporting menu, leading many users to believe credits were their only recourse. This resulted in the company retaining tens of millions of dollars that should have...