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Grocery delivery giant Instacart will pay $60 million in consumer refunds as part of a settlement with the Federal Trade Commission (FTC), after the agency accused the company of misleading shoppers and driving up grocery costs for Americans.
The FTC alleged Thursday 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, the company alleges.
“Instacart misled consumers by advertising free delivery services – and then charging consumers to have groceries delivered – and by failing to inform consumers who signed up for a free trial that they would be automatically enrolled in the subscription program,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
The Instacart logo on a smartphone screen (Thomas Fuller/SOPA Images/LightRocket via Getty Images/Getty Images)
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Regulators allege that Instacart promoted “free delivery” and charged mandatory service fees — sometimes as much as 15% of an order — without clearly disclosing the charges.
The FTC also accused the company of misleading shoppers with a “100% satisfaction guarantee” while offering small credits instead of full refunds and burying refund options within its platform.
Additionally, the agency said Instacart has not clearly disclosed key terms of its Instacart+ subscription program, including automatic charges at the end of free trial periods. As a result, hundreds of thousands of consumers were allegedly billed for memberships without receiving benefits or refunds.
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Customers shop at a Trader Joe’s store on December 10, 2025 in Chicago. (Scott Olson/Getty Images/Getty Images)
However, Instacart denies the allegations.
The Instacart spokesperson added that the company “is proud to offer a transparent, affordable and consumer-friendly service.”
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Instacart gift cards for sale at a Costco store in Queens, NY (Lindsey Nicholson/UCG/Universal Images Group via Getty Images/Getty Images)
“We offer clear marketing, transparent pricing and reimbursement, clear terms and conditions, easy cancellation and a generous refund policy, all fully compliant with the law and exceeding industry standards,” the spokesperson said.
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Under the proposed settlement, Instacart must not mislead consumers about delivery fees or satisfaction guarantees and must obtain explicit consent before charging customers for automatically renewing services, the FTC said.
