Instacart to pay $60M in FTC settlement over consumer claims

Grocery delivery giant Instacart will pay $60 million in refunds to consumers under a settlement with the Federal Trade Commission (FTC) after the agency accused the company of misleading shoppers and increasing grocery costs for Americans.

The FTC on Thursday alleged that Instacart falsely advertised free delivery on first orders, implied full refunds were not offered and signed up consumers for paid subscriptions without clear consent, the company claims.

“Instacart misled consumers by advertising its free delivery services — then charging consumers for grocery delivery — and failing to disclose to consumers who signed up for a free trial that they would be automatically enrolled in its subscription program,” Christopher Mouvrage, director of the FTC’s Bureau of Consumer Protection, said in a statement.

Older Americans lost up to $81.5 billion last year to financial fraud, according to FTC report.

Regulators allege that Instacart promoted “free delivery” while charging mandatory service fees — sometimes as much as 15% of the order — without clearly disclosing costs.

The FTC also accused the company of misleading shoppers with its “100% satisfaction guarantee,” offering small credits instead of full refunds and burying refund options within its platform.

Additionally, the agency said Instacart failed to clearly disclose the basic terms of the Instacart+ subscription program, including automatic charges at the end of free trials. 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.

“We completely deny any allegations of wrongdoing by the FTC, and stand firmly behind the integrity and transparency of our programs,” an Instacart spokesperson told FOX Business. “This settlement allows us to move forward and remain focused on delivering value to our customers, shoppers, retail partners and brands in the communities we serve.”

The Instacart spokesperson added that the company “takes pride in providing transparent, affordable, and consumer-friendly service.”

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Instacart gift cards are on sale at a Costco store in Queens, New York (Lindsay Nicholson/UCG/Universal Image Group via Getty Images / Getty Images)

“We offer direct marketing, transparent pricing and fees, clear terms, easy cancellation and generous refund policies, all in full compliance with the law and exceeding industry standards,” the spokesperson said.

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Under the proposed settlement, Instacart would be prohibited from misleading consumers about delivery costs or satisfaction guarantees and must obtain express consent before charging customers for automatically renewing services, according to the FTC.

FOX Business’ Daniella Genovese contributed to this report.