Instacart has agreed to pay $60 million in consumer refunds following federal accusations that the grocery delivery platform misled customers through hidden fees and forced subscriptions. The settlement follows a lawsuit brought by the Federal Trade Commission, which alleges deceptive business practices that violated federal consumer protection laws. The case underscores growing scrutiny of tech-driven companies that rely on subscription-based revenue models.
According to the FTC, Instacart advertised grocery delivery prices that appeared lower than what consumers ultimately paid. The agency claims the company failed to clearly disclose mandatory service fees and other charges until late in the checkout process. These practices allegedly caused customers to pay more than expected, undermining transparency and informed consent in online transactions.
The lawsuit also alleges that Instacart pushed customers into its paid Instacart+ subscription without proper disclosure. The FTC stated that some users were enrolled in recurring monthly plans without clear notice or meaningful opportunity to decline. Cancellation procedures were described as confusing and burdensome, making it difficult for consumers to stop recurring charges once enrolled.
Under the terms of the settlement, Instacart must provide $60 million in refunds to affected customers. The company is also required to change how it presents pricing information, ensuring that all mandatory fees are clearly disclosed upfront. Subscription enrollment must now require explicit consumer consent, and cancellation options must be easy to locate and use.
Instacart did not admit wrongdoing as part of the agreement but agreed to the settlement to resolve the matter. In a statement referenced by Fox Business, the company said it has already made changes to improve transparency and customer experience. The FTC, however, emphasized that the settlement serves as a warning to other digital platforms that rely on so-called “dark patterns” to drive revenue.
