Instacart settles lawsuit brought by FTC for $60M
By: Michelle Del Rey
USA Today
..... Instacart has agreed to pay consumers $60 million to settle a Federal Trade Commission lawsuit claiming the company engaged in deceptive tactics.
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The agency's lawsuit asserts Instacart deceived consumers with false advertising, failure to provide refunds and unlawful subscriptions enrollment processes.
..... The FTC said in an announcement December 18 [2025] that the practices harmed shoppers and raised the cost of groceries for Americans.
..... Specifically, the agency contends that Instacart's "free delivery" claims are false because consumers must pay a service fee to access the delivery service. Such fees can add a much as 15% to the order cost and were not clearly disclosed to consumers the agency said.
Refund policy under fire
..... The company also allegedly had a 100% satisfaction guarantee policy, which implied it would provide full refunds to customers who experienced incidents of late deliveries or unprofessional behavior.
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However, in most instances, customers were not offered full refunds; they were instead offered small credits to use on a future order.
..... Because the company allegedly hid the refund option form the "self-service" menu on the app, customers through they could not request a refund. Moreover, Instacart failed to disclose the terms of its Instacart+ membership enrollment, the agency claimed.
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The company's free-trial enrollment process did not adequately disclose that consumers would be charged for memberships at the end of their trails. The agency claims Instacart charged consumers for paid memberships without their consent, causing hundreds of thousands of consumers to pay fees without receiving benefits from the membership or getting refunds.
Customers set to receive refunds
..... As part of the settlement, Instacart will pay customers refunds if they were charged for Instacart+ without their informed consent. However, it;s not clear at this time how customers will be able to access the refunds. Additionally, Instacart will be required to cease its alleged deceptive practices, according to a news release.
..... "Instacart misled consumers by advertising free delivery services - and then charging consumers to have groceries delivered - and failing to disclose to consumers hat singed of for a free trial hat they would be automatically enrolled into its subscription program," said Christopher Nufarrige, director of the FTC's Bureau of Consumer Protection.
..... "The FTC is focused on monition Online delivery services to ensure that competitors are transparently competing on price and delivery terms," he said.
..... In an emailed statement to USA Today, Instacart said it denies the allegations against the company.
..... "We provide straightforward marketing, transparent pricing and fess, clear terms, easy cancellation, and generous refund policies," the statement said, "All in full compliance with the law and exceeding industry norms.
..... "This settlement allows us to move forward and remain focused on delivering value for our customers, shoppers, and retail and brand partners in the communities we serve."