"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."
"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."
Instacart will pay $60 million in customer refunds under a settlement with the FTC over alleged deceptive practices. The FTC alleged false advertising of free deliveries and inadequate disclosure of service fees that can add as much as 15% to an order and are required for customers to receive groceries. The FTC said Instacart failed to clearly disclose that free trials of Instacart+ convert to paid memberships and that hundreds of thousands were charged without receiving benefits or refunds. The FTC said satisfaction guarantees typically resulted only in small credits, not refunds. Instacart denied wrongdoing but agreed to settle; shares fell nearly 2%.
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