According to Gizmodo, Instacart agreed on Thursday to issue $60 million in refunds to settle a lawsuit from the U.S. Federal Trade Commission. The FTC accused the grocery delivery giant of deceptive practices, including falsely advertising “free delivery” while charging mandatory service fees of up to 15%. The agency also says Instacart misled users with a “100% satisfaction guarantee” that rarely led to full refunds and failed to clearly disclose that free trials would automatically enroll customers into its paid Instacart+ subscription. This settlement news broke the same day reports surfaced that the FTC is separately probing Instacart’s pricing practices. The company, in a statement to Gizmodo, flatly denied any wrongdoing.
The Real Cost of “Free” Delivery
Here’s the thing about that “free delivery” promise: it was basically a mirage. The FTC says Instacart was slapping on a mandatory service fee that could hike the total by 15%, and they weren’t being upfront about it. So you think you’re getting a deal, but your final bill tells a different story. It’s a classic dark pattern—advertise one attractive price to get you in the door, then hit you with the real cost later. And for a service built on convenience, that kind of surprise is a direct betrayal of trust. Who wants to feel nickel-and-dimed when they’re just trying to get groceries?
Subscription Traps and Refund Games
The other allegations are just as frustrating. That “100% satisfaction guarantee”? The FTC claims it was anything but. If your ice cream showed up melted or your order was hours late, you weren’t getting your money back. Instead, Instacart would often offer a measly credit for a future order—and they allegedly hid the actual refund option in the app. Even worse was the subscription trick. Sign up for a free trial and, boom, you’re auto-enrolled in Instacart+ without clear consent. It’s the oldest trick in the SaaS book, but that doesn’t make it right. These practices prey on inattention and make canceling a chore.
What the Settlement Actually Means
So, $60 million sounds like a lot, right? But let’s be real: for a company of Instacart’s size, it’s probably more of a painful sting than a knockout blow. The real impact is in the restrictions. Under the settlement, detailed in an FTC press release, Instacart is now prohibited from misrepresenting costs or guarantees. They have to be crystal clear about terms and get your explicit “yes” before charging you for any auto-renewing subscription. That’s the stuff that might actually change user experience. But enforcement is key. Will they just find new, slightly-less-shady gray areas to operate in? Many companies do.
A Broader Warning for the Gig Economy
This isn’t just an Instacart problem. It’s a spotlight on the entire “gig economy” or platform service model. The pressure to grow and show profit leads to these manipulative design choices—the hidden fees, the hard-to-cancel subscriptions. The FTC is clearly paying attention, and this settlement, coupled with the separate pricing probe, sends a message. For users, it’s a reminder to read the fine print (as annoying as that is) and check your statements. For Instacart, the cost isn’t just $60 million. It’s the erosion of consumer trust at a time when competition is fierce. And in the business of convenience, trust is the most important ingredient of all.
