Instacart Lawsuit Alert: $60M FTC Settlement Approved—Check If You Qualify for a Refund and How to Claim
Instacart agreed to pay $60 million in consumer refunds on December 18, 2025, settling FTC allegations that the company deceived customers with false “free delivery” claims, misleading satisfaction guarantees, and unauthorized Instacart+ subscription charges. The settlement was filed in the U.S. District Court for the Northern District of California (Case No. 3:25-cv-10783). Hundreds of thousands of consumers who were charged for Instacart+ memberships without consent or who paid hidden service fees will receive refunds once the court approves the settlement.
What Is the Instacart FTC Settlement About?
On December 18, 2025, the Federal Trade Commission filed a lawsuit and proposed settlement order against Maplebear Inc., doing business as Instacart, in federal court in San Francisco. The FTC alleged Instacart violated the Federal Trade Commission Act and the Restore Online Shoppers’ Confidence Act through multiple deceptive practices that raised costs for American consumers.
The Three Core Allegations
False “Free Delivery” Advertising
Instacart falsely advertised “free delivery” to first-time customers while simultaneously charging mandatory service fees that added as much as 15% to order costs. The FTC claims these mandatory fees were not clearly disclosed, making the “free delivery” promise illusory.
Misleading “100% Satisfaction Guarantee”
The company advertised a “100% satisfaction guarantee” but typically offered only small credits toward future orders rather than full refunds to customers experiencing late deliveries or unprofessional service. Instacart hid the refund option from the self-service menu consumers used to report order problems, leading many to believe they could only receive credits, not refunds.
Unauthorized Subscription Charges
Instacart’s free-trial enrollment process for Instacart+ did not adequately disclose that consumers would be charged for memberships at the end of trials, nor did it disclose the company’s restrictive refund policy. Hundreds of thousands of consumers were charged membership fees without receiving benefits from the membership or getting refunds.
Settlement Details: $60 Million in Consumer Refunds
What the Settlement Requires
Under the proposed settlement order, Instacart will be prohibited from making misrepresentations concerning delivery service costs and satisfaction guarantees. The company must clearly and conspicuously disclose terms and obtain express informed consent for transactions involving subscription models where consumers are automatically charged unless they actively opt out.
The Commission vote approving the stipulated final order was 2-0. The settlement becomes enforceable once a District Court judge signs the order.
Timeline of the Case
- Alleged violations occurred: Between 2013 and 2019
- FTC investigation period: 2019-2025
- Lawsuit and settlement filed: December 18, 2025
- Court: U.S. District Court for the Northern District of California, San Francisco Division
- Case number: 3:25-cv-10783
- Payment deadline: Within 14 days of court order entry
- Compliance monitoring: 10 years from order entry
Who Is Affected and Eligible for Refunds?
Affected Consumers
Consumers who experienced any of the following may be eligible for refunds:
- Charged for first orders with hidden service fees after being promised “free delivery”
- Charged for Instacart+ memberships without express informed consent
- Automatically enrolled in paid Instacart+ subscriptions after free trials without clear disclosure
- Denied full refunds despite the “100% satisfaction guarantee” advertising
- Received only credits instead of refunds when reporting order problems
Hundreds of thousands of consumers were charged membership fees without receiving benefits from the membership or getting refunds.
Who Qualifies for Refunds
The FTC has not yet released specific eligibility criteria, but refunds are expected to go to:
- Consumers charged for Instacart+ without express informed consent
- Customers who paid mandatory service fees on “free delivery” first orders
- Users denied refunds despite satisfaction guarantee claims
How to Claim Your Refund
Current Status (As of December 21, 2025)
The FTC has not yet announced the refund claim process. The FTC will announce the refund claim process after the settlement receives court approval.
Expected Process
Based on similar FTC settlements (such as the Amazon Prime settlement), consumers can expect:
Automatic Refunds: Some eligible consumers may receive automatic refunds without filing claims, likely within 90 days of court approval.
Claim Forms: Other consumers may receive claim forms via email sent to their Instacart account email address, with a deadline to submit (typically 180 days).
Payment Timeline: Refunds typically arrive 30 days after claim approval.
How to Prepare
Check Your Email: Monitor the email address associated with your Instacart account for communications from the FTC or an approved claims administrator.
Gather Documentation:
- Instacart+ subscription charges on credit card or bank statements
- Screenshots of “free delivery” promotions you received
- Records of denied refund requests
- Email confirmations from Instacart about orders, subscriptions, or credits
Preserve Evidence:
- Don’t delete Instacart emails or account history
- Save transaction records showing service fees charged on “free delivery” orders
- Document instances where you received credits instead of refunds
Monitor Official Sources:
- FTC website: https://www.ftc.gov/enforcement/refunds
- FTC press releases about Instacart
- Instacart settlement updates
What Is Instacart’s Response?
Company Denies Wrongdoing
In a blog post, Instacart acknowledged the FTC settlement but denied “any allegations of wrongdoing by the agency.”
“We flatly deny any allegations of wrongdoing by the Federal Trade Commission, and we stand firmly behind the integrity and transparency of our programs. This settlement allows us to move forward and remain focused on delivering value for our customers, shoppers, and retail and brand partners in the communities we serve,” an Instacart spokesperson said in a statement.
Instacart’s Position
The grocery delivery platform said it uses “straightforward marketing, transparent pricing and fees, clear terms, easy cancellation and generous refund policies” that comply with the law.
Instacart stated it clearly displays all fees before checkout, distinguishes between delivery fees and service fees, clearly discloses Instacart+ terms, and makes cancellation quick and easy.
What Are the Legal Claims?
Federal Trade Commission Act Violations
The FTC alleged Instacart violated Section 5 of the Federal Trade Commission Act by making false or misleading claims in its advertising and marketing, specifically regarding delivery costs and satisfaction guarantees.
Restore Online Shoppers’ Confidence Act (ROSCA)
The FTC alleged violations of ROSCA, which requires companies to:
- Clearly disclose all material terms of subscription services before charging consumers
- Obtain express informed consent before charging consumers’ accounts
- Provide simple cancellation mechanisms
Specific Legal Theories
Deceptive Advertising: False claims of “free delivery” while charging mandatory service fees that add as much as 15% to order costs.
Misleading Satisfaction Guarantees: Implying full refunds while providing only partial credits.
Dark Patterns: Hiding the refund option from the self-service menu to discourage consumers from requesting refunds.
Negative Option Billing: Charging consumers for subscriptions without adequate disclosure or consent.
What Are the Required Changes to Instacart’s Practices?
Prohibited Conduct
Instacart is permanently banned from:
- Misrepresenting costs of delivery services
- Making false claims about satisfaction guarantees or refund policies
- Failing to clearly disclose all material terms before enrolling consumers in subscription services
- Charging consumers without express informed consent
Required Disclosures
Instacart must:
- Clearly and conspicuously disclose all costs associated with delivery services before purchase
- Display subscription terms in a manner “difficult to miss” and “easily understandable”
- Obtain affirmative consent before charging for subscriptions
- Make disclosures in the same medium as the promotional claim (e.g., if advertising on mobile app, disclose on mobile app)
Compliance Monitoring
The settlement includes a 10-year monitoring period during which Instacart must:
- Create and retain detailed records of advertising, marketing, and subscription practices
- Submit compliance reports to the FTC
- Allow FTC access to personnel and records for monitoring
- Notify the FTC of significant business changes
Impact on Consumers and the Gig Economy
Broader Implications
The FTC has sought to crack down on deceptive billing and sign-up tactics across several industries.
“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.
Similar Enforcement Actions
Uber: The FTC sued Uber in April 2025, claiming the ride-hail provider charged users for Uber One subscriptions without their consent. On Monday, 21 states joined the agency’s lawsuit as part of an amended complaint.
Live Nation/Ticketmaster: In September 2025, the agency sued Live Nation and Ticketmaster for allegedly using bait-and-switch pricing tactics and illegally coordinating with ticket brokers.
Match Group: In August 2025, Match Group settled FTC charges for $14 million over deceptive dating service practices.
“Click to Cancel” Rule
On October 16, 2024, the FTC finalized its “Click to Cancel” rule, making it easier for consumers to end recurring subscriptions. This rule requires companies to make cancellation as easy as sign-up.
Separate Investigation: AI Pricing Tool
Ongoing FTC Investigation
The settlement comes as Instacart is currently under fire over a recent study that revealed its AI-powered pricing tool is causing some customers to receive different prices for the same items at the same stores.
Reuters reported on Wednesday the FTC has begun an investigation into the delivery platform’s AI pricing tool. Instacart said the FTC requested information about its retail partners’ pricing practices and its pricing tools as part of the investigation.
Consumer Reports Investigation
Instacart responded to the controversy by stating that retailers determine their own prices, and any pricing tests conducted through its AI tool are random and not influenced by user data.
An investigation by Consumer Reports and Groundwork Collaborative found grocery prices differed by as much as 23% between customers on Instacart due to algorithmic pricing experiments.
The FTC didn’t include any allegations about Instacart’s pricing practices in its settlement, the company said. This remains a separate ongoing investigation.
What Should Affected Consumers Do?
Immediate Actions
Monitor Your Email: Check the email address linked to your Instacart account regularly for official communications from the FTC or settlement administrator.
Check FTC Refund Programs Page: Visit https://www.ftc.gov/enforcement/refunds regularly for updates on the Instacart settlement and claim process.
Document Your Experiences:
- Review credit card and bank statements for Instacart+ charges
- Screenshot or save emails showing “free delivery” offers followed by service fee charges
- Document instances where you were denied refunds or offered only credits
Preserve Your Instacart Account History: Don’t delete your account or order history, as you may need this information to verify eligibility.
When Claim Forms Are Released
Respond Promptly: FTC settlement claim periods are typically 180 days, so file as soon as forms are available.
Provide Complete Information: Include all requested documentation such as transaction IDs, dates, amounts charged, and supporting evidence.
Keep Copies: Save copies of your completed claim form and all supporting documents.
Watch for Scams: The FTC will never ask you to pay fees to receive a refund or request sensitive information like full Social Security numbers via email.
Long-Term Actions
Review Subscription Services: Check all your recurring subscriptions for unauthorized charges or unclear terms.
Read Terms Carefully: Before enrolling in free trials, review cancellation policies and auto-renewal terms.
Use Credit Card Protections: Consider using credit cards that offer subscription management tools and easy dispute processes.
Report New Issues: If Instacart violates the settlement terms, report it to the FTC at https://reportfraud.ftc.gov.
Frequently Asked Questions
Q: When will I receive my refund from the Instacart FTC settlement?
The FTC has not yet announced the refund distribution timeline. Based on similar settlements, refunds may begin 90-180 days after court approval of the settlement. Monitor https://www.ftc.gov/enforcement/refunds for updates.
Q: Do I need to file a claim to receive a refund?
This has not been determined yet. Some consumers may receive automatic refunds, while others may need to file claims. The FTC will announce the process once the court approves the settlement.
Q: Who is eligible for refunds from the $60 million settlement?
Consumers who were charged for Instacart+ without their express informed consent will receive refunds as a result of the settlement. This includes those automatically enrolled after free trials, those who paid hidden service fees on “free delivery” orders, and those denied refunds despite satisfaction guarantees.
Q: How much money will each person receive?
The refund amount per consumer depends on the total number of eligible claimants and the specific fees each person was charged. The $60 million will be divided among all eligible consumers after administrative costs.
Q: What was Instacart accused of in this lawsuit?
The FTC alleged Instacart falsely advertised “free delivery,” falsely advertised a “100% satisfaction guarantee,” and failed to clearly disclose terms relating to Instacart+ membership enrollment.
Q: Did Instacart admit wrongdoing?
No. Instacart flatly denied any allegations of wrongdoing and stated it stands firmly behind the integrity and transparency of its programs.
Q: What changes must Instacart make under the settlement?
Instacart will be prohibited from making misrepresentations concerning costs of delivery services and satisfaction guarantees. Instacart must also clearly and conspicuously disclose terms and obtain express informed consent for subscription models.
Q: Is this settlement related to Instacart’s AI pricing tool investigation?
No. The FTC didn’t include any allegations about Instacart’s pricing practices in its settlement. The AI pricing tool remains under separate FTC investigation.
Q: How do I avoid similar issues with other companies?
Read all terms and conditions before enrolling in free trials, review your credit card statements monthly for unauthorized charges, and understand cancellation policies before subscribing. The FTC’s “Click to Cancel” rule now requires companies to make cancellation as easy as sign-up.
Disclaimer: This article provides general information about the Instacart FTC settlement. It does not constitute legal advice. For specific questions about your eligibility or refund claim, consult the official FTC settlement information at https://www.ftc.gov/enforcement/refunds or speak with a consumer protection attorney.
Last Updated: December 21, 2025
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah