• Instacart to pay $60 million in customer refunds to settle FTC allegations.
• FTC claims Instacart misled customers about free delivery and subscription fees.
• Company denies wrongdoing but seeks to refocus on its services post-settlement.
• Instacart faces a separate FTC investigation into its pricing practices.
• Concerns raised over potential price variances based on customer data.

Instacart has agreed to pay $60 million in refunds to settle allegations brought by the Federal Trade Commission (FTC) regarding deceptive marketing practices, particularly concerning its subscription services and promise of "free delivery." The FTC's claims assert that Instacart charged hidden service fees and falsely advertised free delivery for shoppers, with such fees adding as much as 15% to total orders, undermining consumer trust in pricing transparency, according to CBS News, SFGate, and Al Jazeera.

In addition, the FTC alleged that Instacart inadequately informed customers enrolling in free trials of its Instacart+ program that they would be automatically charged membership fees once the trial ended. As a result, many customers were reportedly left with little to no benefits from these memberships while continuing to incur costs, as highlighted by FTC director Christopher Mufarrige, who emphasized monitoring online services for fair pricing practices, according to CBS News and SFGate.

While Instacart denies any wrongdoing, the company views the settlement as a means to move forward and refocus on its business strategies. An Instacart spokesperson emphasized the company's commitment to "straightforward marketing" and compliance with legal standards, asserting its practices exceed industry norms Al Jazeera, SFGate, and CBS News.

In a related development, Instacart is undergoing a separate investigation by the FTC into its pricing practices following concerns that different users could be charged varying prices for the same items under similar conditions. This situation has raised alarms regarding the potential use of artificial intelligence tools to modify pricing based on obscure factors, prompting criticism from consumer advocates Al Jazeera and SFGate.