Instacart announced on December 18 that it will pay $60 million to settle a Federal Trade Commission complaint alleging the company misled consumers with false advertising and deceptive subscription enrollment practices. The FTC’s case focused on claims that Instacart promoted “free delivery” on first orders, offered a “100 % satisfaction guarantee,” and failed to disclose the terms of its Instacart+ membership program. The settlement requires Instacart to refund affected customers, revise its marketing materials, and implement new disclosure procedures for subscription terms.
Affected customers will receive refunds automatically within 30 days of the settlement. Instacart has stated that no claim filing is required; the company will identify and reimburse customers who were enrolled in Instacart+ without proper consent. The refund amount will be the full subscription fee paid, and the process will be handled through the existing customer support portal.
The $60 million payment represents a significant regulatory cost for Instacart, roughly 2 % of its reported annual revenue of $2.5 billion. The settlement will be recorded as a one‑time expense, reducing net income for the year and tightening earnings guidance. Management has indicated that the company will adjust its marketing spend to avoid similar pitfalls, which could modestly compress future revenue growth as promotional offers are scaled back.
Beyond the immediate financial hit, the settlement signals heightened regulatory scrutiny of Instacart’s consumer‑facing practices. The company must now obtain explicit, informed consent before enrolling customers in paid subscriptions and ensure that “free delivery” claims are accurate. These operational changes may slow the pace of customer acquisition and require tighter oversight of marketing teams, potentially affecting the company’s competitive positioning in the grocery‑delivery market.
Instacart is also under a separate FTC investigation into its AI‑driven pricing tool, Eversight, which has raised concerns about price discrimination and transparency. The combination of the settlement and the ongoing probe has prompted a cautious market reaction, with the stock falling 1.5 % in after‑hours trading on the day of the announcement. Investors are wary of additional compliance costs and reputational damage that could arise from the Eversight investigation.
In a statement, Instacart’s spokesperson reiterated the company’s commitment to transparency and compliance. “We stand by the integrity of our programs and remain confident that our practices meet or exceed industry standards,” the spokesperson said. The company emphasized that the settlement allows it to move forward and focus on improving customer experience while continuing to grow its business.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.