Instacart has agreed to pay $60 million in refunds to resolve allegations from the U.S. Federal Trade Commission that the grocery delivery company used deceptive advertising and sign-up tactics that led some customers to pay more than expected and made it harder to get money back.
According to the FTC, Instacart’s promotional claims around “free delivery” gave shoppers the wrong impression about what they would actually pay at checkout. The agency says customers were still charged a mandatory service fee, which could add as much as 15% to the total cost of an order. In other words, even when delivery was marketed as “free,” additional required fees could still raise the final price substantially.
The FTC also took issue with Instacart’s “100% satisfaction guarantee,” arguing that it suggested customers would get full refunds whenever they weren’t satisfied. The agency claims that in many common situations—such as late deliveries or unprofessional service—consumers typically did not receive a full refund, despite what the guarantee language implied.
Another major complaint focused on how refunds were presented inside the app. The FTC said Instacart removed or hid the refund option from the self-service help flow customers use to report problems. This design choice, the agency alleged, made people believe they could only accept account credit toward a future purchase rather than request a true refund back to their original payment method.
The settlement also addresses concerns about Instacart+ enrollment disclosures. The FTC alleged that Instacart did not clearly explain key terms during the free trial sign-up process, including that consumers would be charged once the trial ended. As described by the agency, this allowed charges to occur without consumers’ fully informed consent. Eligible consumers are expected to receive refunds as part of the settlement.
FTC consumer protection officials said the case reflects a broader effort to keep online delivery services transparent, particularly when it comes to pricing promises and delivery terms that can influence where shoppers spend their money.
Instacart acknowledged the settlement in a company blog post while denying wrongdoing. The company said it disagreed with the allegations and argued that the basis of the FTC’s inquiry was flawed.
The settlement arrives at a time when Instacart is also facing fresh scrutiny tied to concerns about pricing. A recent study suggested the company’s AI-powered pricing tool may result in different customers seeing different prices for the same items at the same stores. Instacart responded by saying retailers set their own prices and that any pricing tests using its tools are random and not based on personal user data. Separately, reports say the FTC has opened an investigation into Instacart’s AI pricing tool.
For shoppers, the case puts a spotlight on a growing issue across delivery apps: eye-catching offers and guarantees can look simple on the surface, but the real cost—and the real path to refunds—often depends on fine print, app design, and how fees and memberships are disclosed during checkout and sign-up.
