Instacart's $60M FTC Deal Over Hidden Fees and Surprise Charges

The Federal Trade Commission has filed suit against Instacart, alleging a pattern of deceptive practices that quietly cost customers extra money. According to the complaint, Instacart advertised "free delivery" while still tacking on a mandatory service fee that could raise an order's cost by as much as 15%. The FTC also claims Instacart's "100% satisfaction guarantee" implied shoppers would get full refunds, when in reality most received only a small credit toward a future order, and the option to even request a refund was buried. Separately, the FTC alleges that Instacart's free trial for its Instacart+ membership failed to clearly warn users they'd be billed once the trial ended, resulting in many people being charged for a paid subscription without giving clear, informed consent.

Instacart has not admitted or denied the allegations, apart from acknowledging facts needed to establish the court's jurisdiction. Under the proposed settlement order, the company would pay $60 million and commit to changing its practices going forward, including clearly disclosing delivery fees and refund terms, and obtaining explicit customer consent before charging for any subscription.

The case is not yet finalized. The FTC's Commissioners approved the stipulated order by a 2-0 vote and filed it with the U.S. District Court for the Northern District of California, but it only becomes binding once a judge signs off, and as of the most recent update, that signature was still pending.

If approved, refunds would go to consumers who were charged for Instacart+ without their express informed consent. The $60 million would be placed into a fund managed by the FTC, which would determine how payments are distributed. Instacart would also be required to hand over relevant customer data to help the FTC process refunds, and to supply any further information the Commission requests.