Delivery company Instacart will pay $60 million in customer refunds under a settlement reached with the Federal Trade Commission.
FILE - An instacart logo and an instacart webpage are seen in New York, Sept. 6, 2023. Delivery company Instacart will pay $60 million in customer refunds under a settlement reached with the Federal Trade Commission over alleged deceptive practices.
The FTC said Thursday that Instacart has been falsely advertising free deliveries. The San Francisco-based company isn’t clearly disclosing service fees, which add as much as 15% to an order and must be paid for customers to receive their groceries, the FTC said.Instacart has also failed to clearly disclose that customers who enroll in a free trial for its Instacart+ program will be charged membership fees at the end of the trial. The FTC said hundreds of thousands of customers have been charged but have received no benefits from memberships or refunds. Instacart+ offers members free deliveries on most orders for $99 per year. The FTC said Instacart also advertises a “100% satisfaction guarantee,” but customers who experience late deliveries or unprofessional service are typically only offered a small credit that can be used toward a future order and not a refund. “The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms," said Christopher Mufarrige, the director of the FTC’s Bureau of Consumer Protection. Instacart denied the FTC’s allegations of wrongdoing Thursday but said it reached a settlement in order to move forward and focus on its business. “Instacart is proud to offer a transparent, affordable and consumer-friendly service. 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,” the company said in a statement.Earlier this month, a report by Consumer Reports and two progressive advocacy groups — Groundwork Collaborative and More Perfect Union — found that Instacart charged different prices for the same grocery items even though online shoppers were filling their Instacart baskets at the same time and at the same stores. The report suggested that Instacart may be using artificial intelligence tools to drive up costs for consumers. Instacart confirmed Thursday that the FTC has requested information on its pricing tools and the pricing practice of the retailers it works with. In its own blog post Thursday, Instacart stressed that it isn’t a retailer and doesn’t control base prices listed on its website. It said retailers often test prices in order to see how sensitive consumers are when prices go up or down, and that’s what was happening in Consumer Reports’ case. Instacart also said the company and its retailers don't use information about shoppers’ income, zip code or shopping history to set prices. Instacart said it encourages retailers to charge the same amount on its website as they charge for in-store shoppers. Some retailers, including Lowe’s, Ulta Beauty and Best Buy, already do that, Instacart said, but many others don't. Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Atascosa County Sheriff's Office vehicle struck during traffic stopH-E-B, Meals on Wheels preparing for 33rd annual Feast of Sharing this weekendHabitat for Humanity Kerr County faces delays to repair 12 homes by year’s endSan Antonio man has reunited more than 200 people with lost class rings nationwideLocal businesses launch donation drive for South Side family after fatal crashHill Country camps add flood-warning towers months after deadly July 4 floodsSuspected thief stole more than $200K in jewelry from San Antonio businesses, police say1:55Fog and drizzle safety tips from Meteorologist Sarah SpiveyTrinity University, SwRI developing nasal spray treatment to combat PTSDCity housing administrator signed for dead homeowner; other employees altered records, audit findsCity housing administrator signed for dead homeowner; other employees altered records, audit findsCredit card skimmers discovered at Circle K near Stone Oak, Hollywood Park police chief saysWhat's happening on KSAT Sports Now this week!South Texas man sets world record for oldest wingsuit jumperHill Country flood survivors face new needs as cold weather drives demand for winter essentialsSan Antonio mom gets holiday homecoming surprise from active-duty military sonsSpurs fans honk horns downtown after win vs. Thunder in NBA Cup semifinalsResidents upset with speeding and lack of crosswalks at West Side intersectionAbraham Quintanilla, father of music icon Selena, has died, family saysSan Antonio family navigates life separated amid $30K immigration battleSkydiver dangles at 15,000 feet after parachute catches on plane's tailSan Antonio Catholic faithful embark on traditional journey honoring Our Lady of Guadalupe2 dead in shooting at Stone Oak apartment complex, SAPD says🦍 Congo Falls gorilla exhibit at San Antonio Zoo to open this weekend
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