Instacart will refund $60 million to consumers to settle allegations brought by the Federal Trade Commission (FTC). The FTC had alleged that Instacart charged for membership in its paid Instacart+ loyalty program without customers’ informed consent, as well as engaging in “numerous unlawful tactics that harmed shoppers and raised the cost of grocery shopping for Americans,” according to an FTC statement.
“Instacart misled consumers by advertising free delivery services — and then charging consumers to have groceries delivered — and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection in a statement. “The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms.”
Instacart “flatly” denied any wrongdoing alleged by the FTC, saying that the $60 million settlement “allows us to move forward,” according to a company spokesperson who provided comments to Retail TouchPoints. “Instacart is proud to offer a transparent, affordable and consumer-friendly service,” the spokesperson added. “We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation and generous refund policies – all in full compliance with the law and exceeding industry norms.”
The FTC’s suit, filed in the U.S. District Court for Northern California-San Francisco division, had alleged that:
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- Instacart’s claims of “free delivery” on customers’ first order are false, because consumers must pay a mandatory “service fee” to get their delivery. These fees add as much as 15% to the order’s cost and were not clearly disclosed to consumers;
- Instacart falsely advertised a “100% satisfaction guarantee,” implying full refunds if customers are unsatisfied, but hid the refund option from the “self-service” menu, leading many consumers to believe they could only receive credit toward a future order rather than a refund; and
- Instacart’s free-trial enrollment process for Instacart+ didn’t adequately disclose that consumers would be charged for membership at the end of these trials, nor did it disclose Instacart’s restrictive refund policy.
The FTC has been focused on clarity and transparency in these consumer interactions, and has had some success in getting ecommerce companies to improve their CX in this area. In September 2025 Amazon settled with the FTC for $2.5 billion, resolving a complaint about allegedly deceptive practices related to Prime membership that had originally been filed in June 2023.
