Instacart agrees to refund subscribers $60 million in FTC settlement

In a blog post, Instacart emphasized that it has admitted no wrongdoing and elected to settle to “move forward.”

The app defended its “$0 delivery fees” claim by reminding customers that “we clearly and consistently distinguish delivery fees from service fees, which are always shown as a separate, itemized line.” Instacart also noted that subscribers receiving refunds were sent email reminders before renewals were charged. Further, any subscriber shocked by the charges had five days to request an automatic full refund if services were never used, the company said.

Boasting that Instacart has helped users save more than $3 billion “through deals, discounts, and loyalty programs,” the company estimated that users weren’t harmed by its practices and, on average, save $5 for each order.

“We flatly deny any allegations of wrongdoing by the agency, and we believe the foundation of the FTC’s inquiry was fundamentally flawed,” the company said.

The FTC, however, alleged that “hundreds of thousands of consumers have been charged membership fees without receiving benefits from the membership or getting refunds.”

Defending Instacart users from an alleged “variety of deceptive tactics,” the FTC will now work with Instacart to retrieve customer information and issue refunds, a jointly filed order detailing the settlement said.

In its blog, Instacart repeatedly claimed to be transparent and clear with customers about charges. But in a sign that the settlement is already forcing changes, a claim that the company provides “one of the most transparent, customer-friendly subscription programs available, unlocking $0 delivery fees on grocery orders of $10 or more” was starred. At the bottom of the blog, the company clarified that “service and other fees apply.”