Instacart to refund $60 million over misleading ads

Staff Report: PNN

US online grocery delivery company Instacart will refund $60 million to customers as part of a settlement with the Federal Trade Commission (FTC) over misleading advertising claims.

FTC alleged that Instacart misled customers by claiming “free delivery” and “100% satisfaction guarantee,” while customers were often charged mandatory service fees of up to 15% of the order value. Refunds for dissatisfaction were also not fully honored.

Instacart had removed refund options from its self-service menu, leading customers to believe they would only receive credits for future orders. Automatic charges after free trial subscriptions were also not adequately communicated.

The FTC aims to ensure transparency in pricing and terms for online delivery services. Instacart acknowledged the settlement in a blog post but denied wrongdoing, claiming the FTC’s investigation was flawed. The settlement comes amid ongoing controversy over Instacart’s AI-based pricing tool, which shows different prices to different customers.