In a significant development, Instacart, the popular grocery delivery service, has consented to a $60 million settlement aimed at reimbursing customers who fell victim to what the U.S. Federal Trade Commission (FTC) describes as the company’s misleading practices regarding delivery and membership fees.

The FTC detailed the settlement in a recent press release, accusing Instacart of employing “unlawful tactics” that negatively impacted shoppers and increased grocery expenses for consumers across the nation.

Central to the allegations was Instacart’s promotion of “free delivery,” while simultaneously imposing a service fee that was not transparently communicated to customers. This added cost could elevate a delivery charge by up to 15%, as per the FTC’s findings.

Furthermore, the company was accused of misleading customers about the nature of its Instacart+ service, allegedly presenting it as a free enrollment opportunity without clearly indicating that it involved a paid subscription.

The FTC also charged Instacart with complicating the process for customers seeking refunds for unsatisfactory orders. The agency reported that in some instances, Instacart made it challenging for users to report issues, often resulting in customers accepting smaller credits for future purchases instead of full refunds.

“Instacart misled consumers by advertising free delivery services—and then charging consumers to have groceries delivered — and failing to disclose to consumers that signed up for a free trial that they would be automatically enrolled into its subscription program,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in the press release. “The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms.”

A representative for Instacart was not immediately available to disclose how the company would be identifying eligible customers, or how the payments would potentially be processed.

“Instacart is proud to offer a transparent, affordable and consumer-friendly service. We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation and generous refund policies – all in full compliance with the law and exceeding industry norms,” the company said in a statement provided to the Associated Press.

Customers, meanwhile, may be able to find updates on Instacart’s progress at the FTC’s refunds process page.

Earlier this month, Instacart had also come under scrutiny for another reason: The San Francisco-based company was accused of charging some customers more than others for the exact same items as part of a pricing experiment.

The allegations stem from a study conducted by Consumer Reports, an advocacy group known as Groundwork Collaborative, and the non-profit news organization More Perfect Union. The findings reportedly suggested that Instacart’s grocery delivery app displayed different prices for different customers purchasing identical items. In some cases, the prices differed by as much as 23%, the report said.

Calling the price differences “negligible,” Instacart has hit back at the allegations while stopping short of denying the reports’ findings outright.

In a company blog post published after the reports came out, Instacart admitted to facilitating randomized “online pricing tests” with a “subset” of 10 retail partners. The company suggested that the tests were part of its plan to “[double down] on affordability” and “make services like Instacart accessible to more consumers.”

Instacart also claimed that during testing, “prices never change in real-time, including in response to supply and demand.” The company likened its testing to pricing experiments that a grocery retailer might conduct in-store.

Nexstar’s Alex Baker contributed to this report.