Instacart has agreed to refund $60 million to settle claims by the Federal Trade Commission that it misled customers with deceptive advertising and automatically enrolled users in paid subscriptions. The grocery delivery service, which partners with over 1,800 retailers and serves millions of customers across North America, was accused of multiple tactics that increased costs for shoppers without their knowledge.
The FTC complaint alleges that Instacart advertised “free delivery” while charging mandatory service fees that could add up to 15 percent of the order. It also claimed that the company offered a “100% satisfaction guarantee” but often provided only small credits toward future purchases instead of full refunds. Customers attempting to access refunds through self-service menus were often led to believe that credits were their only option.
The complaint also raised concerns about Instacart+ free trials. Many users were automatically charged for memberships at the end of the trial period without clear disclosure. Hundreds of thousands of consumers were affected, paying for services they did not intend to subscribe to.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that the agency is focused on ensuring online delivery services compete transparently on pricing and subscription terms. Under the settlement, Instacart must end all deceptive practices and clearly disclose subscription details. Consumers who were charged without consent will receive refunds.
Instacart remains under investigation for pricing practices after consumer advocacy groups noted that the platform charged different prices for identical products depending on the user. The company explained this as randomized A/B testing to gauge price sensitivity and denied using personal information to determine prices. Retail partners retain full control over individual product prices.
In a statement, Instacart said, “We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation, and generous refund policies all in full compliance with the law. We deny any allegations of wrongdoing and remain focused on delivering value for our customers, shoppers, and retail partners.”
For everyday consumers, this case highlights how technology platforms can obscure costs and manipulate subscriptions, even for widely used services. Awareness of these practices can help people make more informed choices when navigating online marketplaces and subscription programs.
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