Washington, D.C. Attorney General Karl A. Racine claims the grocery-delivery company led customers to believe they were tipping delivery people through an automatic 10 per cent service fee. Racine also alleges the company owes the District “hundreds of thousands of dollars” in unpaid sales taxes. (The Logic)
Talking point: Instacart has long been accused of misleading its contract workers and customers about its fee structure. Workers have staged protests every year since the firm changed its original tipping system in 2016. And in 2017, it settled a US$4.6 million class-action suit over claims it misclassified workers as independent contractors and failed to properly compensate them. Instacart’s business has soared during the pandemic, reaching profitability for the first time as it eyes an IPO. Before the pandemic, industry experts told The Logic that failing to address long-standing concerns around its fee structure and other labour issues could compromise its plans to go public.