Instacart Agrees to $60 Million FTC Refund Settlement Amid Scrutiny of Fees and AI Pricing

New updates have been reported about Instacart (PC:INSCV)

Instacart will pay $60 million in refunds to resolve U.S. Federal Trade Commission allegations that it misled customers about delivery fees, satisfaction guarantees, and subscription terms, a move that directly affects its economics, customer trust, and regulatory risk profile. The FTC said Instacart’s marketing of “free delivery” was deceptive because orders still carried a mandatory service fee of up to roughly 15%, and its “100% satisfaction guarantee” suggested full refunds that were typically not provided for issues such as late deliveries or poor service. Regulators also accused Instacart of obscuring the cash-refund option in its self-service problem-resolution menu, steering users toward credits instead, and of failing to clearly disclose that its Instacart+ free trial would convert into a paid subscription, allowing the company to bill consumers without what the FTC considers informed consent. Impacted users, including those charged after trials, are slated to receive refunds as part of the settlement, creating both a direct financial cost and potential operational changes to Instacart’s user interfaces, disclosures, and marketing practices.

Instacart has publicly rejected the FTC’s characterization, stating in a blog post that it denies any wrongdoing and considers the inquiry’s foundation “fundamentally flawed,” but the settlement underscores intensifying regulatory attention on digital marketplaces’ pricing and transparency. The action comes as Instacart faces separate criticism over its AI-driven pricing tool after a recent study indicated that some customers pay different prices for the same items at the same stores; the company insists retailers set prices and that any AI-enabled pricing tests are random and not based on user data. Reuters reported that the FTC has now opened an investigation into this AI pricing system, extending regulatory pressure beyond fees and refunds into Instacart’s technology and pricing architecture. For executives and investors, these developments signal higher compliance and reputational risk, potential adjustments to fee and subscription structures, and closer scrutiny of Instacart’s use of AI, even as the broader online delivery sector comes under tighter oversight for how it communicates price and value to consumers.