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Instacart to Pay $60 Million in FTC Consumer Protection Case
Insurance Journal· 2025-12-23 06:57
Core Viewpoint - Instacart will pay $60 million to refund consumers misled into enrolling in its subscription service, Instacart+, as per the US Federal Trade Commission's findings [1][2] Group 1: Consumer Misleading Practices - Maplebear Inc., the operator of Instacart, allegedly misled consumers by advertising their first order as "free" while imposing a mandatory grocery delivery fee [2] - The company failed to clearly disclose the terms of the Instacart+ subscription service and did not provide refunds, opting instead to offer credits for future orders [2] Group 2: Company Response - Instacart denied any wrongdoing and criticized the FTC's inquiry as fundamentally flawed, asserting the integrity and transparency of its programs [3] Group 3: Industry Context - The FTC's actions against Instacart are part of a broader initiative targeting digital subscriptions that are difficult to cancel, with similar cases against Amazon and Adobe [4] - Amazon agreed to pay $2.5 billion to resolve allegations regarding its Prime subscription's cancellation difficulties, while Adobe is contesting the FTC's claims in court [4][5] - Uber Technologies Inc. is also under scrutiny for its subscription practices, facing a lawsuit from the FTC [5]