News Summary

Instacart has agreed to a $60 million settlement with the U.S. Federal Trade Commission (FTC) over allegations that it engaged in deceptive advertising practices. The FTC accused Instacart of misleading consumers with claims of ‘free delivery’ and a ‘100% satisfaction guarantee,’ which were not upheld in practice. Consumers were subjected to mandatory service fees and often did not receive full refunds for unsatisfactory service. Additionally, the company hid refund options from its self-service menu, leading customers to believe they could only receive credits for future orders. Instacart also allegedly failed to clearly inform users that they would be charged at the end of a free trial for its subscription service, Instacart+. The settlement requires Instacart to issue refunds to affected consumers. Instacart has denied any wrongdoing but has acknowledged the settlement. The FTC’s investigation into Instacart also includes a recent examination of price discrepancies attributed to its AI pricing tool.