Continuous Legal Issues With InstaCart

Instacart has been facing several lawsuits recently. In August 2022, Instacart settled a lawsuit brought by the Attorney General for the District of Columbia over accusations that Instacart misclassified workers, failed to pay sales tax, and wasn’t clear about where the money for its service fee was going1. In October 2022, Instacart settled another employee lawsuit for over $45 million1. In 2020, the Office of the Attorney General (OAG) alleged that from 2016 until 2018, Instacart falsely led consumers to believe that “service fees” charged on orders were tips that went directly to delivery workers—but instead, the fees went to Instacart, and the company used them to subsidize operating expenses.