According to Fast Company, Instacart has agreed to a $60 million settlement with the Federal Trade Commission to resolve allegations of deceptive advertising. The FTC claims the company falsely advertised “free” deliveries while burying service fees of up to 15% per order. They also allege Instacart wasn’t clear that customers in a free trial for its Instacart+ program would be auto-charged a $99 annual fee, leaving hundreds of thousands paying for benefits they didn’t receive. Furthermore, the FTC says Instacart’s “100% satisfaction guarantee” typically only offered small future credits, not refunds, for late or poor service. Instacart denied wrongdoing but settled to move forward, with its shares dropping nearly 2% after the news broke on Thursday.
The Real Cost of Convenience
Here’s the thing: this settlement isn’t really about $60 million. It’s about the entire business model of “convenience” apps. The FTC is directly targeting what experts call “dark patterns”—those design tricks and murky disclosures that get you to pay for things you didn’t fully intend to. Service fees that aren’t shown upfront? Auto-renewing free trials that are hard to cancel? Vague “guarantees” that don’t actually refund your money? That’s the playbook. And the FTC’s Bureau of Consumer Protection director, Christopher Mufarrige, made it clear they’re watching the whole online delivery sector. This is a shot across the bow for DoorDash, Uber Eats, and every other subscription service out there.
But Wait, There’s More
Now, the timing is brutal for Instacart. This settlement landed just as a separate report from Consumer Reports dropped, suggesting the company might be using AI to charge dynamic, and potentially unfair, prices. The FTC said it was “disturbed” by those reports, though this settlement doesn’t include any pricing allegations. Instacart’s defense is telling: they say they don’t control base prices, the retailers do. They position themselves as just a platform. But that’s a slippery argument when your entire brand is built on being the storefront. If the prices are confusing and the fees are hidden, who does the customer blame? Instacart, every time. Their attempt to deflect by naming retailers like Lowe’s and Best Buy that do charge the same in-store price just highlights how many don’t.
A Settlement Isn’t a Solution
So Instacart writes a big check and promises to be more transparent. Will anything really change? These practices are profitable for a reason. That $99 Instacart+ fee, especially when snagged via a tricky free trial, is a huge revenue driver. Clear, upfront pricing might mean fewer sign-ups. It’s a fundamental tension. The FTC’s action forces a recalculation—the cost of the fine and the reputational hit versus the profit from the old methods. For now, the math says settle. But without ongoing scrutiny, what’s to stop the fees from creeping back in new, creative ways? This settlement feels less like a conclusion and more like the opening chapter in a larger fight over fairness in digital marketplaces. Basically, read the fine print. Always.
