Instacart advertised 'free delivery' and a '100% guarantee' it didn't honor

Instacart's marketing told first-time customers their delivery was free, then charged a separate 'service fee' at checkout that covered the same cost under another name. Its site also advertised a '100% satisfaction guarantee,' which the FTC said Instacart did not honor with full refunds when customers complained.

Alongside the ad claims, the FTC alleged Instacart enrolled customers into its paid Instacart+ membership without clearly disclosing the terms or getting their express consent — a pattern the agency has pursued against subscription businesses broadly, but here layered directly on top of the free-delivery and guarantee claims that had drawn customers in.

On 18 December 2025, Instacart settled the FTC's lawsuit for $60 million in consumer refunds, reaching hundreds of thousands of customers. The proposed order bars the company from repeating the free-delivery, satisfaction-guarantee and hidden-enrollment claims, and requires clear disclosure and affirmative consent before charging for Instacart+ going forward. Instacart also agreed to end AI-driven price testing named in the same action.