According to CNBC, Instacart has agreed to pay $60 million to settle a lawsuit from the Federal Trade Commission. The FTC alleged the grocery delivery platform engaged in deceptive advertising and “unlawful subscription enrollment” practices. Specifically, the agency claims Instacart falsely advertised “free delivery” on first orders while still charging mandatory service fees. It also allegedly misled users about its “satisfaction guarantee” refund policy and failed to properly disclose that free trials would automatically roll into paid subscriptions. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated the company misled consumers on these key points. In a blog post, Instacart acknowledged the settlement but firmly denied “any allegations of wrongdoing by the agency.”
The Dark Pattern Playbook
Here’s the thing: this settlement isn’t about some accidental, obscure fine print. It reads like a textbook case of dark patterns—those design tricks meant to manipulate user behavior. Promising “free delivery” while quietly adding a non-optional service fee? That’s not a misunderstanding; it’s a bait-and-switch. And the automatic subscription enrollment after a free trial? That’s the oldest trick in the SaaS book, but it’s still illegal if not clearly disclosed. The FTC’s complaint suggests these weren’t one-off errors but a systemic approach to boosting revenue and locking in users. So much for customer-centricity.
Why Now and What’s at Stake?
Timing is everything. The FTC under Chair Lina Khan has been intensely focused on digital marketplaces and “commercial surveillance.” Instacart, which went public just last year, now faces the dual headache of a massive fine and a major public trust hit. For a company whose entire model is built on convenience and reliability, being accused of systematically deceiving customers is a brutal look. The $60 million will go toward consumer refunds, but the real cost is reputational. In a crowded delivery space where margins are thin and switching costs are low, trust is the main currency. They’ve just devalued theirs.
The Non-Apology Apology
Instacart’s response is a classic corporate maneuver. They “acknowledge” the settlement but deny wrongdoing. In their blog post, they pivot hard to talking about their commitment to “simplicity” and “transparency.” But let’s be real: you don’t pay $60 million if you’re confident you did nothing wrong. This is the cost of doing business calculation—settle, move on, and hope customers forget. The problem is, the FTC isn’t forgetting. This settlement sends a clear signal to the entire gig economy and subscription app world: those shady enrollment tactics and misleading price claims are in the crosshairs. It’s a warning shot. Will anyone else listen?
