The grocery app will also stop hiding refund options and obscuring delivery costs.
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Instacart has agreed to pay out $60 million in subscriber refunds, the Federal Trade Commission announced on Thursday.
The refunds will help settle a lawsuit the FTC raised, accusing the grocery delivery app of engaging in “numerous unlawful tactics that harmed shoppers and raised the cost of grocery shopping for Americans.”
Under the settlement—which expires after 10 years—Instacart agreed to stop marketing its app with allegedly deceptive claims. That includes supposedly offering “free delivery,” when customers actually paid up to 15 percent in “service fees” not charged for pickup orders. Those service fees, the FTC alleged, were “just delivery fees by another name.”
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Source: Ars Technica