Instacart has agreed to pay $60 million in consumer refunds to resolve a lawsuit brought by the U.S. Federal Trade Commission (FTC) that accused the grocery delivery platform of engaging in deceptive practices related to fees and subscription terms. Under a proposed settlement, the company must also change how it markets delivery promotions and disclose key pricing and subscription information more clearly to shoppers.
According to the FTC’s complaint, Instacart misled customers by advertising “free delivery” on first orders while still charging mandatory service fees that can amount to as much as 15% of the order’s cost. Regulators said these fees weren’t clearly disclosed upfront, leading consumers to pay more than expected for grocery delivery services.
The agency also challenged Instacart’s “100% satisfaction guarantee,” claiming the promise implied full refunds for unsatisfactory service. In practice, the FTC said, customers often received only small credits toward future orders instead of cash refunds, and the true refund option was difficult for users to locate on Instacart’s platform.
Another focus of the FTC complaint was the company’s Instacart+ subscription trial terms. The agency alleged that Instacart failed to clearly disclose that free trials would automatically convert to paid annual memberships, and that the restrictive refund policy for these subscriptions was not adequately explained.
Under the settlement, Instacart must provide clear, conspicuous disclosures and obtain express consent before enrolling consumers in services that automatically renew.
Instacart has denied any wrongdoing, arguing that its pricing and subscription terms are transparent and that the settlement allows it to move forward while serving customers and partner retailers. The settlement will take effect once signed by a federal judge.
As the company settles this case, it faces broader scrutiny around how pricing is presented and implemented on its platform, especially after recent investigations into variable pricing practices tied to AI‑driven experiments.
