Instacart surged as a lifeline for grocery deliveries during the pandemic, but federal regulators have now imposed a $60 million refund order over deceptive practices that misled millions of users.
Hidden Fees and Surprise Charges
Shoppers drawn to Instacart’s prominent “free delivery” promotions on first orders often faced unexpected costs at checkout. The Federal Trade Commission detailed how a mandatory service fee, sometimes exceeding 15% of the order total, appeared without prominent warnings, inflating bills beyond expectations. A promised 100% satisfaction guarantee frequently resulted in small store credits rather than full refunds for delivery issues. These practices turned routine grocery runs, such as a $50 order, into higher totals without clear disclosure.
Subscription Enrollment Tactics
Instacart allegedly enrolled hundreds of thousands of users into Instacart+ trials with unclear terms, leading to automatic charges after the free period without explicit consent or simple cancellation options. Many affected customers received only store credits instead of cash refunds upon complaint. The FTC highlighted these methods as relying on confusing interfaces that hindered users from avoiding ongoing payments.
AI-Driven Price Variations
Instacart conducted undisclosed pricing experiments using algorithms that showed different prices for identical items to different users. Consumer Reports testing revealed that nearly 75% of products varied in price, with one example showing a carton of Lucerne eggs at a Washington, D.C., Safeway listed from $3.99 to $4.79 depending on the shopper’s profile. These tests, rolled out to about 10 retail partners, operated without consumer notification, prompting accusations of surveillance pricing based on user data.
The $60 Million Settlement
In December 2025, the FTC secured a $60 million settlement from Instacart, filed in California federal court, to compensate affected consumers for misleading advertisements, hidden fees, and subscription issues. The agreement mandates upfront disclosure of all delivery costs, service guarantees, and auto-renewal terms, along with explicit consent requirements for charges. Instacart must cease the variable pricing tests and provide direct redress, marking one of the largest penalties against a delivery app.
Industry Ripples and Future Scrutiny
Instacart denied the allegations, maintaining its pricing was transparent and met industry standards, but agreed to the terms without admitting wrongdoing to resolve the case. The ruling halts personalized price testing and bans deceptive disclosures, with uniform pricing now in place. Competitors like DoorDash and Uber Eats face increased oversight amid rising grocery costs and similar complaints. Regulators signal broader enforcement against dark patterns in apps, where data-driven tactics risk harming vulnerable users. As delivery services evolve with AI, the balance between innovation and fairness will determine consumer trust and potential further actions.
Sources
Federal Trade Commission, Instacart to Pay $60 Million in Consumer Refunds to Settle FTC Lawsuit, Dec. 2025.
CBS News, Instacart to pay $60 million in refunds after feds allege it deceived shoppers, Dec. 2025.
Fox Business, Instacart to pay $60M in FTC settlement over consumer claims, Dec. 2025.
Consumer Reports, Instacart shoppers saw wildly different prices for identical groceries, June 2024.
Insurance Journal, Instacart to Pay $60 Million in FTC Consumer Protection Case, Dec. 2025.
Retail TouchPoints, Instacart charged hidden fees analysis, Dec. 2025.