Instacart to Pay $60M in Refunds for Misleading Subscription Practices

Grocery Delivery Service Instacart Settles FTC Claims for $60 Million

Instacart, a popular grocery delivery service, has agreed to refund $60 million to settle claims made by the Federal Trade Commission (FTC) regarding misleading advertising and unauthorized enrollment in paid subscriptions.

With partnerships with over 1,800 retailers, Instacart offers online shopping, delivery, and pickup services from nearly 100,000 stores across North America. The platform serves millions of customers and is utilized by approximately 600,000 independent shoppers in thousands of cities in Canada and the United States.

The FTC filed a complaint alleging that Instacart employed deceptive tactics that increased costs for customers. These tactics included not providing advertised refunds, falsely promoting “free delivery” while still imposing mandatory service fees that inflated order costs by up to 15 percent.

The FTC also accused Instacart of misleading customers with a “100% satisfaction guarantee” that often resulted in small credits for future orders instead of full refunds for delivery or service issues. The company allegedly concealed refund options, leading customers to believe that credits were their only recourse.

Furthermore, the FTC claimed that Instacart’s enrollment process for its Instacart+ membership program did not disclose that users would be automatically charged after a free trial period. This led to numerous consumers being charged membership fees without receiving benefits or refunds.

Instacart misled consumers by advertising free delivery services and then charging for grocery delivery without disclosing this to users who signed up for a free trial. The FTC is committed to ensuring transparency in online delivery services to promote fair competition based on pricing and delivery terms. — Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

As part of the settlement, Instacart must cease all deceptive practices and provide clear disclosure of its subscription service terms. The FTC has mandated that all users erroneously charged for Instacart+ memberships will be refunded.

Although Instacart has resolved the FTC’s allegations regarding deceptive tactics, the company remains under scrutiny for its pricing practices. A joint investigation by consumer advocacy groups revealed that Instacart implemented varying prices for the same products for different online shoppers simultaneously at the same stores.

Instacart defended these price differences as part of short-term, randomized A/B testing to gauge consumer sensitivity to item prices. The company denied setting prices based on individual customer data or controlling base prices, asserting that retail partners retain full authority over pricing.

“Instacart is dedicated to offering a transparent, affordable, and consumer-friendly service. We adhere to clear marketing, transparent pricing, and fees, easily understandable terms, simple cancellations, and generous refund policies—all in compliance with the law and industry standards,” said an Instacart spokesperson to BleepingComputer.

“We strongly deny any allegations of misconduct by the FTC and stand behind the integrity and transparency of our programs. This settlement enables us to move forward and focus on delivering value to our customers, shoppers, and retail partners in the communities we serve.”

Update December 19, 08:52 EST: Added Instacart statement.

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