DC AG Sues Instacart Over Service Fee Allegations

Instacart charged Washington, D.C., residents “millions of dollars in deceptive service fees” and failed to pay “hundreds of thousands of dollars in District sales tax,” D.C. Attorney General Karl Racine alleged in a lawsuit Thursday. For 18 months, the grocery delivery app “failed to clearly disclose to consumers that optional service fees were added on their bills and led them to believe these fees were tips for their delivery workers,” Racine alleged in a D.C. Superior Court filing, noting the fees didn’t increase employee pay. Customer transparency is “incredibly important,” an Instacart spokesperson emailed, saying service fees are clearly marked. Racine’s complaint is without merit, the company said: “We’re disappointed with today's action by D.C. Attorney General Racine’s office and we welcome the opportunity to continue an open dialogue on these matters.”