The Federal Trade Commission reaches $60 million settlement with Instacart over deceptive practices
(ABC36 NEWS NOW) – The Federal Trade Commission has reached a settlement with grocery delivery company Instacart over allegations of false advertising and deceptive practices that harmed consumers.
The FTC announced Thursday that Instacart will pay $60 million in refunds to customers who were charged for services without their written consent.
According to the agency, the refunds will go to customers who were enrolled in Instacart services without being properly informed or who were charged after signing up for what they believed was a free trial.
As part of the settlement, Instacart also agreed to stop what the FTC described as deceptive business practices.
The commission said Instacart previously promoted a free trial but failed to clearly disclose that customers would be charged to continue having groceries delivered. Regulators also took issue with the company’s “100 percent satisfaction guarantee,” which implied customers would receive a full refund if they were unhappy.
Instead, the FTC said Instacart often provided only a small credit toward a future grocery delivery rather than a full refund.
The settlement resolves the FTC’s claims against the company, though Instacart did not admit wrongdoing as part of the agreement.
