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Instacart to pay $60M to settle FTC claims it deceived consumers
TechCrunch· 2025-12-18 21:07
Core Viewpoint - Instacart will pay $60 million in refunds to settle allegations from the U.S. Federal Trade Commission (FTC) regarding misleading advertising practices that resulted in consumers paying higher fees and being denied refunds [1][4]. Group 1: Misleading Advertising Claims - The FTC alleged that Instacart's claims of "free delivery" are misleading, as customers are still required to pay a mandatory service fee that can add up to 15% of their total order [1]. - The delivery platform's "100% satisfaction guarantee" was deemed false by the FTC, as it implies full refunds for unsatisfied customers, which is not typically honored in cases of late deliveries or poor service [2]. - Instacart was accused of hiding the refund option in the "self-service" menu, leading consumers to believe they could only receive credits for future orders instead of refunds [3]. Group 2: Membership Enrollment Issues - The FTC stated that Instacart failed to clearly disclose terms related to the Instacart+ membership enrollment process, particularly that consumers would be charged after a free trial without their informed consent [4]. Group 3: Ongoing Investigations - The settlement occurs amid scrutiny over Instacart's AI-powered pricing tool, which has been reported to cause price discrepancies for the same items at the same stores. The FTC has initiated an investigation into this pricing tool [7].