Economy

Instacart to Pay $60 Million to Settle Federal Trade Commission Allegations

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Dec 19, 2025

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Instacart has agreed to pay $60 million to settle allegations from the Federal Trade Commission (FTC). The payment is designated for customer refunds and resolves claims that the grocery delivery company used deceptive marketing and billing practices.

The FTC alleged that Instacart misled customers by advertising "free delivery" on first orders while still imposing a service fee. The agency also claimed the company automatically enrolled users of its free trial into a paid subscription program without proper disclosure. According to Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, the company also deceptively advertised its satisfaction guarantee, with the agency stating customers with order problems did not receive the full refunds promised.

While acknowledging the settlement, Instacart denied all allegations of wrongdoing. A company spokesperson stated that its marketing and pricing are transparent and comply with the law, adding that the agreement allows the company to move forward. In addition to the payment, the settlement prohibits Instacart from misrepresenting its costs and requires it to obtain explicit customer consent before enrollment in subscription programs.

Separately, the FTC has raised questions about the company’s pricing practices following a study that indicated its tools could charge different prices for identical items. Instacart stated that some of its retail partners are testing this pricing method, which it described as a standard way to assess customer preferences. The company also noted that the settlement included no allegations related to its pricing.

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• The company denied all allegations of wrongdoing. While agreeing to the settlement, Instacart maintained that it did not engage in any illegal activity. A company spokesperson stated that its marketing and pricing practices are transparent and comply with the law.

• The settlement allows the company to move forward from the dispute. Instacart's representative characterized the agreement as a way to put the matter behind them. The company agreed to the $60 million payment to resolve the claims without admitting to the FTC's allegations.

• The company clarified that separate questions about its pricing are unrelated to the settlement. In response to a separate FTC study on its pricing tools, Instacart stated that its retail partners use this method as a standard way to test and assess customer preferences. The company also pointed out that the settlement included no allegations related to its pricing practices.

How it may affect me

As a U.S. reader:

• Some past Instacart customers may receive a refund from the $60 million settlement pool for deceptive fees or subscription enrollments.

• Future Instacart users must give explicit consent for paid subscriptions and should see more transparent cost breakdowns due to the settlement terms.

• Some Instacart retail partners test pricing, meaning the cost for an identical item could vary between different customers.

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