In a blog post, Instacart emphasized that it has not admitted wrongdoing and has chosen to “move forward.”
The app defended the '€0 delivery charge' claim by reminding customers that 'we make a clear and consistent distinction between delivery charges and service charges, which are always shown as a separate, itemized line.' Instacart also noted that subscribers who received refunds were sent email reminders before being charged for renewals. In addition, any subscriber shocked by the charges had five days to automatically request a full refund if the services were never used, the company said.
Boasting 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 saved an average of $5 on every order.
“We flatly deny any allegations of wrongdoing by the agency, and we believe the basis of the FTC's investigation was fundamentally flawed,” the company said.
However, the FTC alleged that “hundreds of thousands of consumers have been charged membership fees without receiving membership benefits or refunds.”
To defend Instacart users against a so-called “variety of deceptive tactics,” the FTC will now work with Instacart to retrieve customer information and issue refunds, according to a jointly filed order detailing the settlement.
In its blog, Instacart repeatedly claimed to be transparent and clear with customers about its costs. But in a sign that the settlement is already forcing changes, it claims the company offers “one of the most transparent, customer-friendly subscription programs available, freeing up $0 delivery fees in the market.” grocery orders of $10 or more” were given a star. At the bottom of the blog, the company clarified that “service and other charges apply.”
