In a blog post, Instacart stressed that it had not admitted any wrongdoing and had decided to “move forward.”
The app defended its “$0 delivery fee” claim by reminding customers that “we clearly and consistently separate delivery fees from service fees, which are always shown as a separate, itemized line.” Instacart also noted that customers who received refunds were sent email reminders before being charged the renewal fee. Additionally, any customers surprised by the charges had five days to request an automatic full refund if the services were never used, the company said.
Claiming that Instacart has helped users “save more than $3 billion through deals, discounts and loyalty programs”, the company estimated that users were not harmed by its practices and, on average, saved $5 for each order.
“We categorically deny any allegations of wrongdoing by the agency and we believe the foundation of the FTC’s investigation was fundamentally flawed,” the company said.
However, the FTC alleged that “hundreds of thousands of consumers were charged subscription fees without benefiting from the subscription or receiving a refund.”
Protecting Instacart users from alleged “a variety of deceptive tactics,” the FTC will now work with Instacart to obtain customer information and issue refunds, the agreement is detailed in a jointly filed order.
In its blog, Instacart has repeatedly claimed to be transparent and upfront with customers about the charges. But one sign that the agreement is already forcing changes is a claim that the company “offers one of the most transparent, customer-friendly subscription programs available, unlocking $0 delivery fees.” Was starred on grocery orders of $10 or more. At the bottom of the blog, the company clarified that “service and other fees apply.”
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