Instacart Settles FTC Allegations for $60 Million

Instacart has agreed to a $60 million settlement with the FTC over claims of misleading consumers about its membership and delivery offers. This issue involves additional fees for 'free delivery' and automatic paid memberships from free trials. Instacart continues to face scrutiny over questionable pricing practices.

Instacart, the online grocery delivery service, will pay $60 million to resolve allegations by the U.S. Federal Trade Commission that it misled consumers with deceptive Instacart+ membership promotions and free delivery offers, according to filings made in San Francisco.

The FTC's claims revolved around Instacart's misleading portrayal of 'free delivery' for first orders while consumers still faced additional fees. Furthermore, the company allegedly failed to clearly communicate that free trials of Instacart+ would become paid subscriptions.

Without admitting any wrongdoing, Instacart agreed to the settlement. However, the company is also under investigation regarding price discrepancies found in a study, involving its Eversight pricing tool, which the FTC is currently examining. Instacart maintains that retailers determine pricing and that its pricing tests are random.

(With inputs from agencies.)