The Federal Trade Commission announced December 18, 2025, that grocery delivery provider Instacart will pay $60 million in refunds to consumers to settle allegations the company engaged in deceptive tactics that harmed shoppers and increased grocery costs. The settlement requires Instacart to end these practices and provide refunds to those charged for Instacart+ memberships without express informed consent.
“Instacart misled consumers by advertising free delivery services—and then charging consumers to have groceries delivered—and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms.”
The FTC alleged Instacart used several deceptive methods that led consumers to pay extra fees and denied them refunds. The agency claimed the company falsely advertised free delivery on first orders, but consumers still faced mandatory service fees adding up to 15 percent to order costs, not clearly disclosed. Instacart also promoted a 100 percent satisfaction guarantee implying full refunds for dissatisfaction, yet consumers with late deliveries or poor service often received only small credits for future orders, not refunds. The refund option was hidden from the self-service menu, causing many to believe credits were the only remedy.
Additionally, Instacart failed to clearly disclose Instacart+ membership terms during free-trial enrollment, leading to charges without consent. This resulted in hundreds of thousands of consumers paying for memberships without benefits or refunds.
Under the proposed order, Instacart must stop misrepresentations about delivery costs and guarantees. For subscriptions with automatic charges unless opted out, the company must clearly disclose terms and obtain express informed consent. The FTC filed the order in the U.S. District Court for the Northern District of California, with a 2-0 Commission vote approving it. Stipulated final orders gain legal force upon court approval and signature by a district judge.
Instacart operates extensively in Maryland, including Southern Maryland areas like Waldorf and Leonardtown, delivering from stores such as Costco, Safeway and Giant Food. Delivery windows start as early as 9 a.m. and extend to midnight, with some 24-hour availability. The settlement could directly affect local users who faced unexpected fees or unauthorized charges, potentially qualifying them for refunds through an FTC-administered process.
The FTC’s action aligns with its mandate under the Federal Trade Commission Act to prevent unfair or deceptive acts in commerce. The Bureau of Consumer Protection investigates complaints, enforces laws and educates consumers. Similar settlements include a 2024 case against another delivery service for hidden fees, emphasizing transparent pricing. In this case, the $60 million fund targets refunds for affected consumers, with distribution details to follow court approval.
In Maryland, the Office of the Attorney General’s Consumer Protection Division handles similar state-level complaints, often coordinating with federal agencies. Maryland law requires clear disclosure of fees and consent for recurring charges under the Consumer Protection Act. Local shoppers in Charles, Calvert and St. Mary’s counties, where Instacart serves rural and suburban areas, may see improved transparency in app interfaces.
The settlement prohibits future deceptive enrollment, requiring conspicuous disclosures before trials end. Consumers charged without consent will receive refunds, potentially via direct deposit or checks, based on FTC records. Instacart denied wrongdoing but agreed to terms to resolve the matter.
This case highlights broader FTC scrutiny of online platforms amid rising e-commerce. In 2024, U.S. grocery delivery reached $150 billion, with Maryland contributing through urban and rural demand. The agency received over 500,000 consumer complaints on subscriptions in 2025, prompting rules for easy cancellations.
For Southern Maryland residents, where traditional grocers like Food Lion and Aldi dominate, Instacart provides convenience for those in remote areas. The settlement may encourage competitors to review practices, fostering fairer pricing. Consumers can report issues to the FTC at ftc.gov/complaint or Maryland’s division at consumer@maryland.gov.
The FTC’s enforcement stems from investigations initiated by consumer complaints and monitoring. Here, allegations covered practices from 2020 onward, affecting millions. Court approval typically occurs within months, after which refunds begin processing.
This resolution underscores consumer rights in digital marketplaces, ensuring disclosures match realities. As grocery delivery evolves, such actions maintain trust in services integral to daily life in regions like Southern Maryland.