Jack Otter leads a ‘Barron’s Roundtable’ panel discussion on Fed tapering, grocery prices, AI, Oracle’s price hike and how Trump’s immigration crackdown is affecting the markets.
Grocery delivery giant Instacart will pay $60 million in consumer refunds under a settlement with the Federal Trade Commission (FTC) after the agency accused the company of misleading consumers and driving up grocery costs for Americans.
The FTC alleged Thursday that Instacart falsely advertised free delivery on first orders, claimed full refunds that weren’t offered and enrolled shoppers in paid subscriptions without express consent, the company says it disputes.
“Instacart misled consumers by advertising free delivery services — then charging consumers to deliver groceries — and failed to disclose to consumers who signed up for a free trial that they would be automatically enrolled in its subscription program,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, in a statement.
The Instacart logo on a smartphone screen (Thomas Fuller/SOPA Images/LightRocket via Getty Images/Getty Images)
OLDER AMERICANS LOST UP TO $81.5B LAST YEAR TO FINANCIAL TROUBLE, FTC REPORT SAYS.
Regulators accused Instacart of promoting “free delivery” while charging mandatory service fees — sometimes as high as 15% of the order — without clearly disclosing the costs.
The FTC also accused the company of misleading consumers 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 failed to clearly disclose key terms of its Instacart+ subscription program, including automatic charges at the end of free trials. As a result, hundreds of thousands of consumers were allegedly charged for membership without receiving any benefits or refunds.
CO-FOUNDER OF IROBOT SAYS FTC’S OPPOSITION TO AMAZON DEAL WAS ‘IMPOSSIBLE’ AFTER FILING BALANCE.
Customers shopping at a Trader Joe’s store Dec. 10, 2025, in Chicago. (Photos by Scott Olson/Getty Images)
However, Instacart denies these allegations.
“We completely deny the allegations of wrongdoing made by the Federal Trade Commission, and we remain steadfast in ensuring the integrity and transparency of our programs,” an Instacart spokesperson told FOX Business. “This settlement allows us to move forward and remain focused on bringing value to our customers, consumers and store partners and products in the communities we serve.”
An Instacart spokesperson added that the company is “proud to provide a service that is transparent, affordable and convenient for consumers.”
INSTACART’S AI PRICING MAGIC COSTS SOME SHOPPERS, STUDY SAYS
Instacart gift cards are sold at a Costco store in Queens, NY (Lindsey Nicholson/UCG/Universal Images Group via Getty Images/Getty Images)
“We offer straightforward marketing, pricing and fees, clear terms, easy cancellation and generous refund policies, all in full compliance with the law and exceeding industry norms,” the spokesperson said.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Under the proposed agreement, Instacart is prohibited from misleading consumers about delivery costs or satisfaction guarantees and must obtain express consent before charging customers for auto-renewal services, according to the FTC.
Daniella Genovese of FOX Business contributed to this report.
