Instacart has agreed to pay $60 million in refunds to settle allegations from the U.S. Federal Trade Commission (FTC) that it deceived consumers with misleading advertising practices. The FTC accused Instacart of misrepresenting its ‘free delivery’ claims and ‘100% satisfaction guarantee,’ as well as obscuring the refund process and inadequately disclosing terms related to its Instacart+ membership enrollment.
The FTC raised concerns that Instacart’s ‘free delivery’ claims were misleading, as customers were still required to pay a mandatory service fee, potentially increasing their total order cost by up to 15%. Additionally, the FTC refuted Instacart’s ‘100% satisfaction guarantee,’ arguing that the promise was deceptive as it did not always result in full refunds, especially in cases of delayed deliveries or poor service.
Furthermore, the FTC criticized Instacart for making it difficult for consumers to obtain refunds, alleging that the company obscured the refund option in its ‘self-service’ menu, leading customers to believe they could only receive future credits instead of refunds for their grievances. The FTC also noted that Instacart inadequately disclosed terms related to its Instacart+ membership enrollment process, resulting in unauthorized fees.
While Instacart acknowledged the settlement in a blog post, the company denied any wrongdoing and questioned the basis of the FTC’s investigation.
Source: TechCrunch
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