Instacart to pay $60 million to customers in FTC settlement
Mashable••business
Key Points:
- Instacart will pay $60 million in consumer refunds to settle an FTC lawsuit alleging deceptive practices such as falsely advertising "free delivery" and a "100 percent satisfaction guarantee," and failing to disclose subscription enrollment terms.
- The FTC accused Instacart of misleading customers by charging delivery fees despite advertising free delivery and enrolling users into paid subscriptions without clear disclosure.
- Instacart denies any wrongdoing, stating the FTC's inquiry was flawed, and emphasizes transparency in its fees, clear subscription terms, and easy cancellation processes.
- As part of the settlement, Instacart must cease the deceptive practices, clearly disclose subscription terms, and obtain explicit consent for subscription transactions.
- The FTC continues to monitor online delivery services to ensure transparent competition
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