FTC: Instacart To Refund $60M Over Deceptive Subscription Tactics

alternative_right writes: Grocery delivery service Instacart will refund $60 million to settle FTC claims that it misled customers with false advertising and unlawfully enrolled them in paid subscriptions. Instacart partners with over 1,800 retailers to provide online shopping, delivery, and pickup services from nearly 100,000 stores across North America. Its platform serves millions of customers and is also used by roughly 600,000 independent shoppers across thousands of cities in Canada and the United States. In a complaint filed on Thursday, the FTC claimed Instacart engaged in multiple deceptive tactics that raised costs for customers, including failing to provide advertised refunds and falsely advertising "free delivery" while still charging mandatory service fees that added up to 15% to order costs. The FTC said Instacart also advertised a "100% satisfaction guarantee," but typically offered only small credits toward future orders rather than full refunds to customers experiencing problems with deliveries or service. The company allegedly hid refund options from "self-service" menus, leading customers to believe credits were their only option.

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