'Daylight Robbery' in the Name of 'Free Delivery'; FTC Takes Stringent Action Against Instacart.

The Federal Trade Commission (FTC) has ordered Instacart, an online grocery delivery platform, to pay $60 million (approximately ₹500 crore) in refunds to consumers for profiting through deceptive practices and misleading customers. Consumers who were charged for Instacart+ memberships without prior notice will receive these refunds. The FTC has also directed the company to immediately cease such fraudulent activities.

The investigation revealed that Instacart committed serious violations, including advertising "free delivery" while charging mandatory service fees and providing false information under its "100% satisfaction guarantee." Furthermore, the Commission found that the company enrolled customers in annual subscriptions and charged them without their knowledge.

Under the new order, Instacart is prohibited from providing false information regarding delivery charges or refund policies. The FTC has issued strict instructions that subscription terms must be clearly disclosed and charges should only be applied with the explicit consent of the customers. Refund procedures will commence once final approval is granted by the Federal Court.