By Dana Sanchez
Instacart, the grocery delivery app that is making millions from people who want to avoid in-store shopping during the coronavirus pandemic, is being sued in Washington, D.C. over deceptive practices and failure to pay taxes.
“Instacart tricked District consumers into believing they were tipping grocery delivery workers when, in fact, the company was charging them extra fees and pocketing the money,” D.C. Attorney General Karl Racine said in a statement.
By contrast, Instacart lost more than $300 million in 2019. Founded by a former Amazon employee in 2012, the private tech firm has been one of the most closely watched in the past five years.
The lawsuit relates to an Instacart policy in effect from September 2016 to April 2018 in which the company charged consumers a default 10 percent “service” fee it could increase, decrease or waive.
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