by United States — Millions of Instacart customers may soon be eligible for refunds totaling up to $60 million after federal regulators accused the grocery delivery platform of using deceptive marketing and billing practices, according to a settlement announced by the Federal Trade Commission.
The agreement follows an investigation by the Federal Trade Commission, which alleged that Instacart misled customers about delivery costs, service fees, and its paid membership program.
FTC Says ‘Free Delivery’ Claims Were Misleading
In a release issued last week, the FTC said Instacart falsely advertised “free delivery” while failing to clearly disclose mandatory service fees that can add up to 15% to an order.
According to regulators, those fees are unavoidable and must be paid for customers to receive their groceries, even when delivery is marketed as free.
The FTC said the lack of clear, upfront disclosure meant many customers were surprised by higher-than-expected checkout totals, a practice the agency considers deceptive.
Issues With Instacart+ Free Trials
The settlement also focuses heavily on Instacart’s Instacart+ membership program, which costs $99 per year and advertises free delivery on most orders.
Regulators allege that Instacart failed to clearly inform customers that they would be automatically charged once a free trial ended. As a result, hundreds of thousands of users were billed for memberships they did not knowingly agree to, the FTC said.
In some cases, customers were charged but received little or no benefit from the membership and were not given refunds, according to the agency.
‘100% Satisfaction Guarantee’ Questioned
The FTC also challenged Instacart’s marketing of a “100% satisfaction guarantee.”
According to the complaint, customers who experienced late deliveries, missing items, or unprofessional service were often given only small account credits rather than full refunds — credits that could only be used on future orders.
Regulators said this contradicted the reasonable expectation created by the guarantee language.
“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
What the Settlement Requires
Under the settlement, Instacart will be required to:
- Stop the deceptive practices outlined by the FTC
- Clearly disclose all fees before customers complete orders
- Ensure customers give informed consent before being charged for memberships
- Issue refunds to customers improperly charged for Instacart+
The agreement will take effect once it is approved and signed by a federal district court judge. The FTC did not specify exactly when refunds will begin.
Instacart Denies Wrongdoing
Instacart denied the FTC’s allegations but said it agreed to the settlement to avoid prolonged litigation and move forward.
In a statement, the company said it believes its service is transparent and consumer-friendly.
“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,” Instacart said.
Separate Scrutiny Over Pricing Practices
The settlement comes as Instacart faces additional public scrutiny over how prices appear on its platform.
Earlier this month, Consumer Reports, along with advocacy groups Groundwork Collaborative and More Perfect Union, published a report alleging that Instacart charged different prices for the same grocery items to different shoppers — even when they were shopping at the same store at the same time.
The report suggested Instacart may have been using algorithmic or AI-driven price testing to increase costs for some consumers.
The FTC said it would not comment on whether it plans to open a separate investigation into those allegations, citing agency policy.
“Like so many Americans, we are disturbed by what we have read in the press,” FTC spokesperson Joe Simonson said.
Instacart Responds to Pricing Claims
Instacart said the FTC requested information about its pricing tools as part of the investigation that led to the settlement, but stressed that pricing practices were not included in the agreement.
In a company blog post, Instacart said it does not control base grocery prices, which are set by retailers. The company acknowledged that some retailers engage in price testing, but said it has now decided to end that practice on its platform.
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Instacart also stated that it does not use personal data, such as income, ZIP code, or shopping history, to set prices.
What Customers Should Know Now
For customers, the key takeaway is that refunds are coming, particularly for those who were charged for Instacart+ without clear consent.
Consumers are encouraged to:
- Review past Instacart charges
- Monitor emails or account notices regarding refunds
- Read membership terms carefully before enrolling in free trials
Bottom Line
The $60 million settlement marks one of the most significant federal actions yet against a major delivery platform, signaling increased scrutiny of digital pricing and subscription practices.
As regulators continue to examine online marketplaces, consumers may see stronger protections and clearer disclosures in the months ahead.
Have you ever been surprised by Instacart fees or membership charges? Share your experience in the comments below and join the conversation.
