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Instacart ordered to refund $60 million to customers
The FTC alleges Instacart deceived customers into signing up for memberships without informed consent and charged fees after offering free grocery delivery. FOX 26's Heather Sullivan has more details on what this means for customers.
HOUSTON - The FTC has accused Instacart of tricking customers into signing up for memberships without informed consent and has ordered the company to refund $60 million to customers.
Instacart to refund customers
Have you used Instacart for grocery delivery? Many customers may be getting a refund from a $60 million settlement with the Federal Trade Commission.
The FTC sued the grocery delivery company, accusing it of deceiving customers with an illegal subscription process.
What they're saying:
The FTC announced Instacart must stop what it calls deceptive practices and customers who were charged for an Instacart+ membership without their informed consent will receive refunds.
According to the FTC, Instacart misled customers by advertising free grocery delivery, but then charged them up to a 15% fee. It says the company failed to disclose to consumers that signed up for a free trial that they would be automatically enrolled in a subscription.
The FTC says hundreds of thousands of customers have been charged membership fees without receiving benefits or getting refunds.
The other side:
In a blog, Instacart acknowledged the settlement but denies any wrongdoing.
How to get your Instacart refund
What's next:
We asked the FTC how customers can get their money from the settlement. The FTC says it will release more details in the future about how consumers can access their refunds.
The Source: Information in this article is from the Federal Trade Commission and the Instacart corporate blog.