Instacart, a grocery delivery platform, will disburse $60 million in consumer reimbursements to resolve a lawsuit concerning deceptive practices, as revealed by the Federal Trade Commission (FTC) on Thursday.

The FTC lawsuit claimed that Instacart employed deceptive tactics, such as:

– Incorrectly advertising “free delivery” on the first order while imposing a service fee of up to 15%
– Incorrectly touting a “100 percent satisfaction guarantee” while not providing full refunds
– Failing to reveal terms of Instacart+ membership, including fees after free trial periods

Christopher Mufarrige, head of the FTC’s Bureau of Consumer Protection, remarked that Instacart misled consumers by advertising free delivery and neglecting to inform them about automatic subscription enrollment following free trials. The FTC’s objective is to ensure clarity in online delivery services regarding pricing and delivery conditions.

Instacart issued a statement refuting any misconduct and criticized the FTC’s investigation as flawed. The company asserted that it is unaware of any other ongoing FTC inquiries and stands by the integrity and openness of its programs.

Instacart claims:

– It prominently lists all fees prior to checkout and explains “$0 delivery”
– The Instacart+ membership complies with regulatory requirements and is favorable to consumers
– The Instacart+ membership is simple to try and cancel

Alongside the $60 million settlement, Instacart consented to halt the practices alleged in the FTC’s lawsuit, including misrepresenting delivery fees. The company must also clearly specify its subscription conditions and secure explicit consent for subscription transactions.