Instacart will pay $60 million to settle FTC claims it misled customers on fees and memberships amid AI pricing scrutiny.

The United States Federal Trade Commission alleged that Instacart deceived consumers by charging fees while advertising "free delivery" on first orders and inadequately notifying users about subscription fees converting after free trials. The FTC is also investigating Instacart’s use of AI pricing tools, accused of driving price increases. Instacart settled to avoid prolonged litigation, agreeing to provide $60 million in refunds but denied any misconduct. The settlement comes amid growing scrutiny of AI's role in pricing transparency in online retail. The company’s stock dropped 1.5% after the announcement, reflecting investor concerns about regulatory risks in AI-based pricing strategies.