Instacart to Refund $60 Million in Settlement Over Deceptive Business Practices
Instacart will refund $60 million to consumers following a settlement with the FTC over allegations of deceptive advertising and unlawful subscription enrollment practices.
Overview
Instacart has agreed to a $60 million settlement to resolve allegations of deceptive business practices, including false advertising and unlawful subscription enrollment.
The settlement requires Instacart to refund consumers who were allegedly harmed by the company's misleading claims and enrollment tactics.
The Federal Trade Commission (FTC) accused Instacart of falsely advertising a "100% satisfaction guarantee" with full refunds, which was not consistently honored.
Instacart was also cited for engaging in unlawful tactics related to its subscription enrollment processes, deceiving customers into unwanted subscriptions.
As part of the agreement, Instacart will cease these deceptive marketing practices to ensure fair and transparent interactions with its customer base moving forward.
Analysis
Center-leaning sources frame this story by emphasizing Instacart's alleged deceptive practices and the negative consequences. They use evaluative language and structure the narrative to highlight the FTC's accusations and the company's settlement, positioning Instacart as a wrongdoer facing repercussions.
Articles (3)
FAQ
Consumers who were charged for Instacart+ subscriptions without express informed consent or who were harmed by the alleged deceptive delivery, fee disclosures, or misleading satisfaction guarantees during the period covered by the FTC complaint are eligible for refunds; the FTC’s proposed settlement establishes a claims process to distribute the $60 million refund pool to affected customers, typically via notifications to eligible accounts and claims administered through a settlement fund or third-party administrator as outlined in the FTC order.[1]
The FTC alleged Instacart (1) misled consumers by advertising ‘free delivery’ while failing to clearly disclose separate service fees that could add up to about 15% of an order, (2) falsely advertised a ‘100% satisfaction guarantee’ but often issued only small credits instead of full refunds, and (3) used deceptive subscription enrollment tactics—enrolling consumers into Instacart+ without express informed consent through confusing or unclear sign-up flows.[3]
Instacart denies the FTC’s allegations but agreed to the settlement to resolve the litigation and move forward; under the proposed FTC order Instacart must stop the identified deceptive practices and implement clearer disclosures, obtain express informed consent for subscriptions, and make cancellation and refund policies more transparent.[3]
Yes—the settlement’s injunctive provisions require Instacart to make pricing and fee disclosures clear and conspicuous, to stop misrepresentations about delivery costs and satisfaction guarantees, and to obtain express informed consent before automatically charging consumers for subscriptions, which will require changes to app interfaces and sign-up flows.[1]
Regulators have increasingly targeted ‘dark patterns’ and misleading subscription practices, and industry observers say this settlement—one of the larger consumer redress actions against a tech platform—could serve as precedent that encourages further enforcement or corrective measures across delivery apps and subscription-based services.
History
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