The Federal Trade Commission announced that Instacart will refund $60 million to subscribers as part of a settlement over deceptive practices. The agreement addresses allegations of misleading claims about delivery fees and satisfaction guarantees. Instacart denies wrongdoing but will implement changes to its marketing and refund processes.
On December 19, 2025, the US Federal Trade Commission (FTC) revealed a settlement with Instacart, requiring the grocery delivery app to pay $60 million in refunds to affected subscribers. The deal resolves a lawsuit accusing the company of using unlawful tactics that harmed consumers and increased grocery shopping costs.
The FTC alleged that Instacart misled users with claims of "free delivery," when service fees of up to 15 percent actually applied—fees not charged for pickup orders and described as essentially delivery costs in disguise. Additionally, the company's "100 percent satisfaction guaranteed" promise was problematic, as customers facing late deliveries or poor service often received only small credits rather than full refunds. The agency claimed Instacart hid full refund options from its self-service problem-reporting menu, causing many to accept credits for future orders instead.
"Instacart pocketed tens of millions of dollars by failing to honor its promise of 100 percent consumer satisfaction," the FTC stated in its complaint. The refunds target subscribers automatically charged after free trials without adequate notice, with funds to be transferred to the FTC within 14 days of court approval. The settlement, lasting 10 years, mandates an end to such deceptive marketing.
Instacart, in a blog post, admitted no wrongdoing and chose to settle to "move forward." The company defended its practices, noting that it distinguishes service fees as a separate itemized line and sends email reminders before charging renewals. It highlighted a five-day window for full refunds if services went unused and emphasized overall savings for users, estimating $3 billion saved through deals and an average of $5 per order. "We flatly deny any allegations of wrongdoing by the agency, and we believe the foundation of the FTC’s inquiry was fundamentally flawed," Instacart said.
The FTC countered that "hundreds of thousands of consumers have been charged membership fees without receiving benefits from the membership or getting refunds." Under the agreement, the agencies will collaborate to identify and compensate affected customers.
