Instacart Sued by DC Attorney General Over Allegedly Deceiving Customers, Failing to Pay Taxes

Instacart Sued by DC Attorney General Over Allegedly Deceiving Customers, Failing to Pay Taxes
A part time worker shops for a client for Instacart at Wegman's market to deliver goods to homes in Woodbridge, N.J., on Aug. 26, 2020. Michael Loccisano/Getty Images
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Instacart, the popular grocery delivery startup valued at $14 billion, is being sued by District of Columbia Attorney General Karl Racine over allegedly deceiving customers with service fees, as well as failing to pay hundreds of thousands of dollars in District sales tax.

The complaint points to a since-changed Instacart policy in place from September 2016 until April 2018 under which, in addition to a delivery fee, the company charged its consumers a default 10 percent “service” fee that could be increased, decreased, or waived.