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.
For tips, questions, or inquiries, email us at hello@laterstack.com.
Related Laterstack Tech Stories
Google Sues Web Scraper for Stealing Search Results at ‘Astonishing Scale’
The RAM Shortage Is Not Going Away and Your Next Phone or PC Will Cost More
Google and Apple Warn Visa Holding Employees to Avoid International Travel
New York Governor Kathy Hochul Signs RAISE Act to Regulate AI Safety
In a San Francisco courtroom, a battle is brewing that could change the way we buy things online. The Amazon Perplexity AI lawsuit challenges whether AI tools can act as personal shoppers, performing real-world tasks on behalf of users.
Amazon claims that Perplexity AI’s Comet bot violated its rules by making purchases without proper disclosure, calling it computer fraud. Perplexity argues that it was simply following user instructions, giving people a faster, smarter way to shop.
This clash is about more than a single website. It could determine whether AI agents will become everyday digital assistants or remain experimental tools restricted by corporate rules.
What is Comet doing?
Comet is a browser-based AI agent that can browse websites, compare products, and complete purchases. Amazon says Comet disguised itself as a regular browser and bypassed security blocks to shop on users’ behalf.
Perplexity insists that Comet only acted with user permission and did not scrape data or train its models on Amazon content. The startup says Amazon is trying to protect its advertising revenue and block competition.
If Amazon wins the case, AI shopping agents may be forced to stop operating on major platforms. If Perplexity wins, AI assistants could become the go-to method for buying anything online, potentially reshaping e-commerce, advertising, and consumer habits.
The stakes for everyday users
The Amazon Perplexity AI lawsuit is about control. Right now, shoppers must navigate websites themselves, compare prices, and manage checkout. AI agents could do all of that automatically.
Imagine telling your assistant to buy a gift under fifty dollars with free shipping. Today you do it manually. Tomorrow, your AI could handle every step for you, saving time and avoiding mistakes.
At the same time, this raises questions. Who is responsible if the AI buys the wrong item? Who guarantees security if the agent acts on your behalf? This case could set the rules for responsibility, liability, and user rights in the AI age.
The corporate angle
Amazon has already tested AI shopping internally. Its tools like Buy For Me and Rufus show that automated assistants can recommend and buy products. The difference is Amazon controls these agents.
Perplexity challenges that monopoly. CEO Aravind Srinivas says people should choose the AI that works best for them, not be forced to use the platform’s own tools. Perplexity also relies heavily on Amazon Web Services, creating an ironic twist: the startup is using Amazon’s infrastructure while being sued by the company.
The result of the Amazon Perplexity AI lawsuit could decide if corporations retain exclusive control over how consumers interact with digital marketplaces, or if AI will be allowed to act independently.
What it means for the future
This lawsuit is not just about shopping. It is a turning point for AI on the internet.
If AI agents are allowed to act autonomously, websites will have to adapt, and new assistants could manage research, bookings, and purchases for millions of people. If they are blocked, digital innovation may slow, and human users will remain responsible for every click.
Either way, the Amazon Perplexity AI lawsuit signals a new era where software negotiates, decides, and acts for us, and where the legal system will determine who controls the future of online action.
Read the original coverage at Bloomberg.
Explore more Laterstack sensational tech stories:
ICC drops Microsoft Office for European open source alternative
The day the Internet stopped: Inside AWS’s massive cloud collapse