Instacart to settle FTC case with $60M in consumer refunds

The Federal Trade Commission announced that grocery delivery service Instacart will provide $60 million in refunds to resolve claims alleging its involvement in multiple deceptive tactics, BleepingComputer reports. According to the FTC, the settlement stems from allegations that Instacart misled customers through false advertising and unlawfully enrolled them in paid subscriptions, practices that the agency said increased costs for users. Regulators alleged in a complaint submitted on Thursday that the company was promoting a "100% satisfaction guarantee" that frequently resulted in small account credits rather than complete refunds, advertising "free delivery" while still charging mandatory service fees of up to 15%, and failing to provide advertised refunds. The FTC also alleged that refund options were hidden from self-service menus, making credits appear to be the only choice. Additionally, Instacart's free-trial enrollment process for its Instacart+ membership program reportedly did not clearly disclose that users would be automatically charged once the trial ended, leading hundreds of thousands of consumers to pay membership fees without receiving benefits or refunds. Under the proposed order, Instacart must stop all deceptive practices, clearly disclose subscription terms, and refund users who were charged for Instacart+ memberships without their consent.