Instacart, one of the most used supermarket shopping platforms in the United States, will pay restitution totaling $60 million to millions of customers after reaching a settlement with the federal government following a lawsuit over fraudulent practices. The move follows an investigation by the Federal Trade Commission (FTC) into the company’s subscription system and the way it reported the service’s true costs.
The agency announced that the refunds will go to customers who were charged by Instacart for a membership without their express consent. The service in question offered unlimited free shipping on orders over $35 as part of a subscription system called Instacart+. According to the FTC, many users signed up for free trials without receiving clear information about automatic activation of a paid plan after 14 days.
In an official statement on December 18, the FTC stated that the company “Deceived consumers by advertising free delivery services and then charging them for grocery delivery.”. The organization highlighted that the lack of transparency affected the final cost of food and other products, resulting in economic damage to buyers.
Those who placed an order through the platform for the first time and were affected by these practices will reportedly receive a refund. The FTC has not specified the individual amount each customer will be charged. Additionally, users who experienced delivery delays or received incomplete orders were given access to credit that they could use toward future in-app purchases.
The agreement between Instacart and the FTC ends litigation that began during the Donald Trump administration. In the arbitration order, the federal authority stated that more than Between December 2020 and September 2024, 30 million customers were affected. The commission unanimously approved the agreement by a vote of 2-0.
As part of the Terms, the Company is prohibited from making false or misleading statements about the cost of its delivery services. You must also clearly state the terms and conditions of subscriptions and fees and obtain informed and explicit consent from users before charging any fees.
In documents filed in the U.S. District Court for the Northern District of California, the FTC detailed the practices that led to the lawsuit. Among them he mentioned the false advertising about free delivery, which in many cases was associated with additional costs of up to 15% of the order value without clear warning. He also questioned that Use of a so-called “100% satisfaction guarantee”because, according to the agency, customers received only small credits and not a full refund if orders were received late or incomplete.
Another key point was that lack of transparency in registration conditions to Instacart+ because there was not enough information that a paid membership was automatically activated after the trial period expired.
The case strengthens the federal government’s control over digital platforms for mass consumption and sets a precedent for the e-commerce and delivery services sectors. According to the FTC, the goal is to ensure that consumers know exactly how much they are paying and under what terms they are receiving these services.
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