Instacart Agrees to $60 Million FTC Settlement Addressing Consumer Claims
Jack Otter leads a ‘Barron’s Roundtable’ panel discussion on Fed cuts, grocery prices, AI, Oracle’s price spike, and how Trump’s immigration crackdown is affecting the markets.
In a significant move, grocery delivery giant Instacart has agreed to pay $60 million in consumer refunds following a settlement with the Federal Trade Commission (FTC). The FTC accused the company of misleading shoppers and contributing to rising grocery costs for Americans.
On Thursday, the FTC alleged that Instacart falsely advertised free delivery on first orders, implied full refunds that were not provided, and enrolled consumers in paid subscriptions without clear consent—claims that Instacart disputes.
“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,” stated Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
The Instacart logo on a smartphone screen (Thomas Fuller/SOPA Images/LightRocket via Getty Images / Getty Images)
OLDER AMERICANS LOST UP TO $81.5B IN THE PAST YEAR TO FINANCIAL FRAUD, FTC REPORT SAYS
Regulators further allege that Instacart promoted “free delivery” while imposing mandatory service fees, which could reach up to 15% of an order, without proper disclosure. The FTC also accused the company of misleading shoppers with a “100% satisfaction guarantee,” offering small credits instead of full refunds, and obscuring refund options within its platform.
Moreover, the agency stated that Instacart failed to clearly disclose essential terms of its Instacart+ subscription program, including automatic charges at the end of free trials. Consequently, hundreds of thousands of consumers were allegedly billed for memberships without receiving the promised benefits or refunds.
Customers shop at a Trader Joe’s store Dec. 10, 2025, in Chicago. (Scott Olson/Getty Images / Getty Images)
Despite these allegations, Instacart maintains its innocence. A spokesperson stated, “We flatly deny any allegations of wrongdoing by the Federal Trade Commission, and we stand firmly behind the integrity and transparency of our programs. This settlement allows us to move forward and remain focused on delivering value for our customers, shoppers, and retail and brand partners in the communities we serve.”
The spokesperson emphasized that the company is “proud to offer a transparent, affordable, and consumer-friendly service.”
INSTACART’S AI PRICING EXPERIMENT DRIVES UP COSTS FOR SOME SHOPPERS, STUDY SAYS
Instacart gift cards on sale at a Costco store in Queens, N.Y. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
According to the proposed settlement, Instacart is prohibited from misleading consumers about delivery costs or satisfaction guarantees. The company must also obtain explicit consent before charging customers for automatically renewing services, as mandated by the FTC.
FOX Business’ Daniella Genovese contributed to this report.
Jack Otter leads a ‘Barron’s Roundtable’ panel discussion on Fed cuts, grocery prices, AI, Oracle’s price spike, and how Trump’s immigration crackdown is affecting the markets.
In a significant move, grocery delivery giant Instacart has agreed to pay $60 million in consumer refunds following a settlement with the Federal Trade Commission (FTC). The FTC accused the company of misleading shoppers and contributing to rising grocery costs for Americans.
On Thursday, the FTC alleged that Instacart falsely advertised free delivery on first orders, implied full refunds that were not provided, and enrolled consumers in paid subscriptions without clear consent—claims that Instacart disputes.
“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,” stated Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
The Instacart logo on a smartphone screen (Thomas Fuller/SOPA Images/LightRocket via Getty Images / Getty Images)
OLDER AMERICANS LOST UP TO $81.5B IN THE PAST YEAR TO FINANCIAL FRAUD, FTC REPORT SAYS
Regulators further allege that Instacart promoted “free delivery” while imposing mandatory service fees, which could reach up to 15% of an order, without proper disclosure. The FTC also accused the company of misleading shoppers with a “100% satisfaction guarantee,” offering small credits instead of full refunds, and obscuring refund options within its platform.
Moreover, the agency stated that Instacart failed to clearly disclose essential terms of its Instacart+ subscription program, including automatic charges at the end of free trials. Consequently, hundreds of thousands of consumers were allegedly billed for memberships without receiving the promised benefits or refunds.
Customers shop at a Trader Joe’s store Dec. 10, 2025, in Chicago. (Scott Olson/Getty Images / Getty Images)
Despite these allegations, Instacart maintains its innocence. A spokesperson stated, “We flatly deny any allegations of wrongdoing by the Federal Trade Commission, and we stand firmly behind the integrity and transparency of our programs. This settlement allows us to move forward and remain focused on delivering value for our customers, shoppers, and retail and brand partners in the communities we serve.”
The spokesperson emphasized that the company is “proud to offer a transparent, affordable, and consumer-friendly service.”
INSTACART’S AI PRICING EXPERIMENT DRIVES UP COSTS FOR SOME SHOPPERS, STUDY SAYS
Instacart gift cards on sale at a Costco store in Queens, N.Y. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
According to the proposed settlement, Instacart is prohibited from misleading consumers about delivery costs or satisfaction guarantees. The company must also obtain explicit consent before charging customers for automatically renewing services, as mandated by the FTC.
FOX Business’ Daniella Genovese contributed to this report.
