Instacart Ordered to Pay $60 Million to Settle FTC Deceptive-Practices Claim — Update

By Katherine Hamilton

Instacart has been ordered to pay $60 million in refunds to customers to settle allegations from the Federal Trade Commission that it used deceptive practices to raise costs for shoppers.

The FTC alleged that the grocery-delivery platform falsely advertised free delivery and 100% satisfaction guarantee, and also didn't adequately disclose the terms for Instacart+ membership.

Consumers were still charged a service fee for deliveries, despite the free-delivery advertising, the FTC claimed. The regulatory body also said that Instacart's satisfaction guarantee implied a refund to unsatisfied customers, though it didn't give them their money back.

Thirdly, the FTC said Instacart's free-trial enrollment process for Instacart+ didn't adequately tell customers they would be charged for memberships at the end of their trials.

The San Francisco company said it uses straightforward marketing, transparent pricing and fees, clear terms and generous refund policies, all of which comply with the law.

"We flatly deny any allegations of wrongdoing by the Federal Trade Commission, and we stand firmly behind the integrity and transparency of our programs," the company said.

Instacart is being ordered to refund customers who were charged for Instacart+ without their express informed consent, the FTC said.

The FTC is also ordering Instacart to cease the practices it deems deceptive. The company will be prohibited from making misrepresentations about costs of delivery services and satisfaction guarantees. It must also clearly disclose terms.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 18, 2025 15:59 ET (20:59 GMT)