Instacart Settlement: Company to Pay $60M in Consumer Refunds, FTC Says

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Instacart will pay $60,000,000 to settle a lawsuit brought by the Federal Trade Commission (FTC) that alleged the grocery delivery service engaged in deceptive business practices that harmed consumers and raised the cost of grocery shopping.

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The proposed FTC Instacart settlement   offers refunds to consumers who were charged for its “Instacart+” premium subscription service without their consent and also requires certain changes to the company’s business practices.

Specifically, the settlement prohibits Instacart from making certain misrepresentations about delivery fees and customer satisfaction guarantees. Additionally, the settlement stipulates that Instacart must clearly and conspicuously disclose the terms of and obtain informed consent for subscriptions where consumers are automatically charged unless they affirmatively opt out.

“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,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection said in a press release.

The FTC Instacart lawsuit further alleged that Instacart harmed consumers and contributed to the increase in grocery prices for Americans.

If the deal is finalized, eligible consumers covered by the FTC Instacart settlement may receive some form of monetary relief, though no specifications have been given as to how refunds will be calculated and distributed.

ClassAction.org will continue to update this page as more information becomes available on the FTC Instacart settlement.

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