Instacart shopper Sarah Hlad on grocery shopping during high coronavirus demand.
Grocery delivery service Instacart is being sued for back taxes and some of its business practices in Washington, D.C.
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In the second major legal action against the 8-year-old company, a Thursday lawsuit filed by Attorney General Karl Racine claims that Instacart misled its customers about fees.
MORE THAN 2,000 INSTACART SHOPPER ACCOUNTS ARE SAFE DESPITE VENDOR INTRUSION
"During all or part of the period of September 2016 through April 2018 (the 'relevant time period'), Instacart made numerous misrepresentations, ambiguities, and omissions regarding its service fee that tended to mislead consumers about the fee’s true nature and purpose," Racine's lawsuit reads.
In addition, court documents allege that Instacart pocketed service charges customers believed were tips for delivery workers and that the San Francisco-based company has not paid sales tax in six years.
"Instacart used these deceptive fees to cover its operating costs while simultaneously failing to pay D.C. sales taxes," Racine alleged in a statement. "We filed suit to force Instacart to honor its legal obligations, pay D.C. the taxes it owes, and return millions of dollars to District consumers the company deceived."