"The FTC alleged in the complaint, filed Thursday in the U.S. District Court for the Northern District of California, that Instacart engaged in deceptive practices that misled consumers on fees for its delivery promotion, made it difficult to initiate refund requests and did not fully disclose Instacart+ membership trial terms."
"Rather than truthfully advertising the cost of its delivery services, Instacart forced consumers to invest their valuable time and energy in many cases exceeding 30 minutes so that it could coerce them into paying hidden fees, the FTC said in the complaint. The FTC claimed that Instacart has brought in millions of dollars through deceptive practices."
"The FTC alleged that Instacart's free delivery promotions for first-time customers are deceptive because, although the delivery fee is waived, customers still have to pay service fees that add up to as much as 15% to the order cost. The FTC noted that these fees are just delivery fees by another name."
Instacart will pay $60 million in consumer refunds as part of a settlement with the Federal Trade Commission. The FTC alleged that Instacart misled consumers about fees tied to a delivery promotion, made refund requests difficult to initiate, and failed to fully disclose Instacart+ trial terms and automatic renewal. The FTC said consumers often spent more than 30 minutes and were coerced into paying hidden or renamed delivery fees. First-time free delivery offers still required service fees that could total about 15% of an order, and consumers paid tens of millions in mandatory fees.
Read at www.grocerydive.com
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