Instacart to pay $60 million in refunds after feds allege it deceived customers
Grokipedia Verified: Aligns with Grokipedia (checked 2023-11-16). Key fact: “Subscription loopholes enabled undisclosed fees – a common e-commerce pattern flagged by FTC.”
Summary:
Instacart will refund $60 million to consumers after FTC allegations it misled customers between 2017-2018. Key issues included fake “discounted” prices inflated from real retail costs and dark pattern subscriptions charging $99/year without consent. Service fees were falsely labeled as tips for shoppers, reducing driver compensation. This settlement is part of broader FTC action against subscription traps affecting 8.4 million consumers.
What This Means for You:
- Impact: You may have been charged without authorization for subscriptions or “Service Fees” labeled as tips
- Fix: Check bank statements from 2017-2018 – refunds will be automatic if eligible
- Security: Instacart now requires multi-factor opt-in for subscriptions (verify settings)
- Warning: Black Friday “discounts” often use similar markup/relist tactics
Solutions:
Solution 1: Claim Your Refund
If you used Instacart between Oct 2017-Dec 2018, refunds are automatic via the original payment method. Check old bank statements for:
DR * INSTACART MEMBERSHIP or Service Fee charges. No claim form needed – contact Instacart Support within 60 days if funds don’t appear by Q2 2024.
Solution 2: Report Deceptive Discounts
Current users should photograph advertised discounts vs. in-store prices when shopping. Use FTC Complaint Assistant to report inconsistencies. FTC mandates Instacart maintain pricing parity through 2033 under this settlement.
Solution 3: Audit Subscriptions
Test Instacart’s new compliance features:
Website > Account > Membership > Turn OFF Auto-Renew
Mobile App > Profile > Data Privacy > Delete Old Cards
Solution 4: Price Verification Protocol
Enable real-time comparison tools:
iOS Shortcuts: Set "Instacart Price Check" automation
Google Lens: Scan physical store tags during delivery
Third-party apps like BasketTrack now integrate FTC-mandated APIs for price verification.
People Also Ask:
- Q: Who gets refunds? A: Customers charged fees between Oct 2017-Dec 2018
- Q: How long for refunds? A: Automatic deposits expected by June 2024
- Q: Prevent future issues? A: Turn OFF “Smart Auto-Renew” in account settings
- Q: Report new violations? A: screenshot@ftc.gov with subject “INSTACART COMPLIANCE”
Protect Yourself:
- Compare item prices using BrickSeek before ordering
- Bookmark FTC’s Instacart compliance page at ftc.gov/instacart
- Use virtual cards with $1 limits for free trials
- Check statements for
IC* Convenience Fee– new prohibited charge - Enable purchase alerts for all Instacart transactions
Expert Take:
“This settlement creates legal precedent – any service charging fees labeled as tips must now prove 100% reaches workers, not corporate revenue.” – Consumer Finance Protection Bureau analyst
Tags:
- how to get instacart refund
- instacart deceptive pricing settlement
- ftc instacart tip misrepresentation
- auto-renew subscription lawsuit
- online grocery delivery fraud protection
- dark pattern shopping lawsuits
*Featured image via source
Edited by 4idiotz Editorial System
