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Instacart Agrees To Pay $60 Million Over Claims Of Misleading Subscription Practices

MarketDash Editorial Team
15 hours ago
The FTC says Instacart promoted free delivery while actually charging customers and automatically enrolled free trial users into paid subscriptions without proper disclosure. The settlement requires the company to refund $60 million and change how it handles subscription sign-ups.

Maplebear Inc. (CART), the company behind grocery delivery service Instacart, has agreed to pay $60 million to settle Federal Trade Commission allegations that it misled customers about delivery charges and subscription practices. It's the kind of settlement that raises questions about how clearly companies communicate what customers are actually signing up for.

What the FTC Says Happened

According to the FTC, Instacart had a habit of promoting "free delivery" to customers and then charging them for delivery anyway. The agency also claims the company failed to properly inform users that signing up for a free trial would automatically roll them into a paid subscription program once the trial ended.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, put it plainly: Instacart deceived consumers by promoting free delivery while charging for grocery deliveries and by not informing free trial users that they would be automatically enrolled in its subscription program.

Under the terms of the settlement, Instacart must now clearly disclose subscription terms upfront and secure explicit informed consent before enrolling anyone in subscription-based services. The company did not immediately respond to requests for comment on the settlement.

More FTC Scrutiny on the Horizon

The $60 million settlement isn't Instacart's only regulatory headache. On Thursday, the company's stock took a hit following reports that the FTC had issued a civil investigative demand seeking information about Instacart's Eversight pricing tool, an AI-based system that helps set prices.

The timing is somewhat ironic. The probe emerged just days after Instacart became the first grocery partner to launch an integrated app on ChatGPT, allowing users to shop and check out directly within a conversation. The feature uses Instacart's real-time network combined with OpenAI's language models to handle everything from meal planning to delivery.

Market data shows Instacart sitting in the 46th percentile for momentum and the 57th percentile for value, reflecting fairly average performance across both metrics.

Price Action: Year-to-date, Instacart (CART) stock has climbed 4.44%. On Thursday, shares fell 1.53% to close at $44.95.

Back to News

Instacart Agrees To Pay $60 Million Over Claims Of Misleading Subscription Practices

MarketDash Editorial Team
15 hours ago
The FTC says Instacart promoted free delivery while actually charging customers and automatically enrolled free trial users into paid subscriptions without proper disclosure. The settlement requires the company to refund $60 million and change how it handles subscription sign-ups.

Maplebear Inc. (CART), the company behind grocery delivery service Instacart, has agreed to pay $60 million to settle Federal Trade Commission allegations that it misled customers about delivery charges and subscription practices. It's the kind of settlement that raises questions about how clearly companies communicate what customers are actually signing up for.

What the FTC Says Happened

According to the FTC, Instacart had a habit of promoting "free delivery" to customers and then charging them for delivery anyway. The agency also claims the company failed to properly inform users that signing up for a free trial would automatically roll them into a paid subscription program once the trial ended.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, put it plainly: Instacart deceived consumers by promoting free delivery while charging for grocery deliveries and by not informing free trial users that they would be automatically enrolled in its subscription program.

Under the terms of the settlement, Instacart must now clearly disclose subscription terms upfront and secure explicit informed consent before enrolling anyone in subscription-based services. The company did not immediately respond to requests for comment on the settlement.

More FTC Scrutiny on the Horizon

The $60 million settlement isn't Instacart's only regulatory headache. On Thursday, the company's stock took a hit following reports that the FTC had issued a civil investigative demand seeking information about Instacart's Eversight pricing tool, an AI-based system that helps set prices.

The timing is somewhat ironic. The probe emerged just days after Instacart became the first grocery partner to launch an integrated app on ChatGPT, allowing users to shop and check out directly within a conversation. The feature uses Instacart's real-time network combined with OpenAI's language models to handle everything from meal planning to delivery.

Market data shows Instacart sitting in the 46th percentile for momentum and the 57th percentile for value, reflecting fairly average performance across both metrics.

Price Action: Year-to-date, Instacart (CART) stock has climbed 4.44%. On Thursday, shares fell 1.53% to close at $44.95.