Thu Dec 18 21:54:38 UTC 2025: Instacart to Pay $60 Million in Refunds Over Alleged Deceptive “Free Delivery” Claims
San Francisco, CA – Instacart, the online grocery delivery giant, has agreed to pay $60 million in refunds to settle Federal Trade Commission (FTC) allegations that it misled customers about its “free delivery” offers and subscription service. The FTC claimed that Instacart’s promise of free delivery for first orders was deceptive because customers were charged additional fees. The agency also accused Instacart of failing to properly inform shoppers that their free trials of the Instacart+ subscription would automatically convert to paid memberships and of misleading consumers about its refund policy.
“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige of the FTC.
While Instacart denies any wrongdoing, stating it provides transparent pricing and fees, the settlement allows the company to move forward.
The company is also facing scrutiny over its pricing practices. A recent study found that shoppers were receiving different prices for the same items at the same stores. The FTC is investigating Instacart’s Eversight pricing tool, which the company says retailers use to set prices and that pricing tests are random.
Lindsay Owens, Executive Director of the Groundwork Collaborative, criticized Instacart for using artificial intelligence to manipulate prices, calling for action to prevent further “algorithmic price gouging.”
The settlement news impacted Instacart’s stock, which closed down 1.5% on the day.
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