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FTC Forces Refunds and Overhauls Subscription Practices at a National Grocery Platform The Federal Trade Commission secured a federal court order requiring Instacart to pay $60 million in consumer refunds  and permanently change how it markets, enrolls, and bills consumers for subscription services. The Company Operating the Platform Maplebear Inc., doing business as Instacart , is a U.S.-based technology company that operates an online platform allowing consumers to purchase groceries and retail goods from local stores for delivery or pickup. Instacart acts as an intermediary. Consumers place orders through Instacart’s website or mobile app. Retailers fulfill the orders. Instacart coordinates payment processing, delivery logistics, and customer-facing services. The FTC named only the corporate entity  as the defendant.No individual executives were charged. The court order applies to Instacart and to its officers, agents, employees, attorneys, and others acting on its behalf who receive notice of the order. This ensures the injunction binds the people who design, approve, and operate Instacart’s consumer-facing systems. How Instacart Charged Consumers Instacart bills consumers for two categories of charges. First, consumers pay for the groceries or goods  purchased from participating retailers. That money largely flows to the retailer. Second, Instacart charges service-related fees , which may include delivery fees, service fees, priority or express charges, and optional subscription memberships known as Instacart+ . Instacart+ offered benefits such as reduced delivery fees and promotional savings. Consumers could enroll through monthly or annual subscription plans. The annual plan involved a larger upfront charge , rather than smaller recurring monthly payments. According to the FTC, Instacart promoted subscription offers directly inside normal shopping and checkout flows. Consumers encountered prompts like “free delivery” or “try free delivery” while completing routine grocery orders. From a mechanical standpoint, these prompts appeared during standard ordering steps. The subscription enrollment was not always presented as a separate purchase decision. Consumers believed they were approving a delivery option for a single order, when the flow actually initiated a negative-option subscription  that could convert into recurring monthly or annual charges. This distinction matters. Under federal law, a negative option means a consumer will be charged unless they take action to cancel. That structure triggers specific disclosure and consent requirements. Where the FTC Says the Process Broke Down The FTC alleges Instacart violated Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act by charging consumers for subscriptions without express informed consent . According to the Complaint and Order, the problems were not limited to one screen or one word choice. The FTC identified failures across multiple decision points. First, subscription terms were not clearly disclosed . The agency alleges Instacart did not clearly and conspicuously disclose material terms such as the cost, frequency, renewal timing, and deadlines to avoid charges before consumers submitted billing information. Second, disclosures were not placed next to consent . The FTC emphasizes placement. Required disclosures must appear immediately adjacent to the button or mechanism used to capture consent. The agency alleges Instacart placed key terms below the fold, behind expandable text, or in dense blocks of language separate from the action button. Third, annual subscriptions were charged without consent . The FTC alleges many consumers were enrolled and charged for annual Instacart+ memberships  even though they did not knowingly agree to an annual recurring charge. This annual charge is separate from per-order service fees and was a central focus of the enforcement action. Fourth, marketing created misleading impressions . Promises such as “free delivery” and “100% money-back guarantee” were presented without clearly disclosing material limitations. The FTC alleges consumers were led to believe refunds were broader or simpler than they actually were. Fifth, cancellation and refunds were not straightforward . The agency alleges cancellation paths were not clearly presented and refund conditions were misrepresented or difficult to locate. Under ROSCA, consumers must be able to stop recurring charges easily and understand how refunds work. From the FTC’s perspective, these were not technical errors. They were design and presentation choices that shaped how consumers understood what they were agreeing to. The Court’s Order, Refunds, and Compliance Rules To resolve the case, the court entered a stipulated order . The order requires Instacart to pay $60,000,000  to the FTC within 14 days. The funds are designated for consumer redress , including refunds to consumers who were charged for Instacart+ without express informed consent. Instacart must relinquish any claim to the funds and may not challenge how the FTC administers the refund program. If refunds cannot be fully distributed, remaining funds may be used for related equitable relief or deposited into the U.S. Treasury. Beyond money, the order imposes permanent conduct restrictions. Instacart is prohibited from: · Misrepresenting the existence of a subscription or negative option feature · Misrepresenting subscription costs, renewal, cancellation, or refund terms · Charging consumers without express, affirmative consent Instacart is required to: · Clearly and conspicuously disclose all material subscription terms · Place disclosures immediately adjacent to the consent mechanism · Obtain express informed consent before charging · Maintain records, submit compliance reports, and distribute the order internally These requirements convert the FTC’s allegations into enforceable operational rules. Where the Case Stands Now The matter is resolved  through the stipulated order entered on December 18, 2025. Instacart did not admit or deny the FTC’s allegations, except for jurisdictional facts. The injunction is permanent. The refund obligation is mandatory. The FTC retains authority to monitor compliance and enforce the order. Future violations would constitute violations of a federal court order. SOURCE Source: FTC Complaint, Stipulated Order, and Case Summary — Federal Trade Commission v. Maplebear Inc., d/b/a Instacart   FTC-Instacart-Researhing