US EditionInstacart to Pay $60 Million in Refunds After Feds Allege It Deceived Customers
Instacart settles FTC claims of false advertising and unlawful subscription practices with a $60 million payment after 21 states joined the lawsuit, impacting consumer fees and refunds.
- Instacart agreed to pay $60 million to settle an FTC lawsuit accusing deceptive advertising and unlawful subscription enrollment, with refunds for consumers improperly charged for Instacart+ memberships.
- The FTC said Instacart dangled `free delivery` while charging mandatory fees, promoted a `100% satisfaction guarantee` with limited refunds, and a study last week showed pricing disparities as 21 states joined the complaint.
- Investigators found a hidden refund option in the self-service menu limited refunds, while customers paid a mandatory service fee that could increase bills by 15%.
- Investors punished Instacart, sending shares lower by about 7% on Wednesday and more than 1% on Thursday, while an Instacart spokesperson said, `This settlement allows us to move forward`.
- Regulators have recently ramped scrutiny, suing Live Nation and Ticketmaster and earlier Uber, and ordered Instacart under the proposed order to provide clear disclosures and explicit consent.
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Instacart To Refund $60 Million To Settle FTC Probe Over Misleading Subscription And Delivery Claims (UPDATED) - Maplebear (NASDAQ:CART)
Maplebear Inc. (NASDAQ:CART) operating as Instacart has agreed to refund $60 million to its customers as a settlement for allegations of deceptive marketing and billing practices made against the grocery delivery service by the Federal Trade Commission (FTC).
Instacart agreed to return $60 million after accusations of hidden charges and misleading advertising, while facing reviews of varying prices among customers
Why Instacart is expected to send $60 million in refunds to customers
Instacart will pay $60 million in refunds to consumers under a proposed settlement with the Federal Trade Commission.Consumers who were charged for Instacart+ memberships without giving express informed consent will be eligible for refunds.Under a proposed settlement, Instacart is also required to stop misleading customers about delivery costs, refunds and its subscription service.RELATED STORY | Advocate says Instacart pricing may violate laws,…
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