""Instacart misled consumers by advertising free delivery services - and then charging consumers to have groceries delivered - and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program," director of the FTC's Bureau of Consumer Protection, Christopher Mufarrige, stated in the FTC's press release. "The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms.""
""We flatly deny any allegations of wrongdoing by the agency, and we believe the foundation of the FTC's inquiry was fundamentally flawed. And to avoid potential confusion, we want to clarify that, as of this settlement announcement, we are not aware of any other pending FTC investigations. We stand firmly behind the integrity, transparency, and value of our programs.""
The Federal Trade Commission obtained a settlement requiring Instacart to pay $60 million in consumer refunds for alleged unlawful tactics. The FTC alleged that Instacart falsely advertised "free delivery" while charging a service fee up to 15 percent, misrepresented a "100 percent satisfaction guarantee" that did not provide full refunds, and failed to disclose that consumers would be automatically enrolled and charged at the end of Instacart+ free trials. Instacart denies wrongdoing, states it displays fees before checkout and clarifies what "$0 delivery" means, and asserts that Instacart+ complies with regulatory standards.
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