Instacart to pay $60 million in refunds after feds allege it deceived customers

Instacart has agreed to refund $60 million to customers in order to settle allegations of deceptive marketing and billing practices, as reported by the Federal Trade Commission (FTC) on Thursday. The FTC claimed that Instacart engaged in hidden fees, failed to issue refunds, and misled consumers with false promises of free delivery services.

According to the FTC lawsuit, Instacart’s advertising of free delivery services was deceptive, as customers were actually required to pay a “service fee” to receive their groceries. The agency also alleged that Instacart did not honor its “100% satisfaction guarantee” by only offering small credits for late or incomplete orders instead of full refunds.

Instacart has denied these allegations, stating that they provide transparent pricing, clear terms, and generous refund policies in compliance with the law. Despite this, the company has agreed to the settlement terms, which include a ban on misrepresenting delivery service costs and satisfaction guarantees, as well as obtaining consent from shoppers before enrolling them in any subscriptions.

In addition to the settlement, concerns have been raised about Instacart’s pricing practices, as the company is reportedly testing technology that can lead to different consumers paying varying prices for the same grocery items. Instacart explained that this approach to pricing is being tested by 10 retail partners to assess customer preferences.

Overall, Instacart remains focused on delivering value to its customers, shoppers, and retail partners. The company is committed to transparency and integrity in its programs, despite the allegations made by the FTC. This settlement allows Instacart to move forward and continue serving the communities it operates in.

Edited by Alain Sherter