Canadians could cash in on proposed class-action lawsuit against Instacart
If you’re an avid user of Instacart in Canada, you could be part of a new proposed class-action lawsuit.
Consumer Law Group, a law firm that specializes in class actions, filed against the designer, developer, and operator of grocery delivery platform Instacart, Maplebear Inc. and its Canadian subsidiaries Maplebear Canada Inc., Maplebear Delivery Canada Inc., and Maplebear Logistics Canada Inc.
The law firm filed the proposed class-action lawsuit with the Federal Court of Canada on February 12.
It alleges that Maplebear fails to disclose the all-in pricing of purchases made by shoppers on the Instacart Canada website and the mobile app. It claims the company then charges delivery fees, service fees, purchase prices, and other fees higher than what is initially represented or indicated to users when completing transactions on the site and app.
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Consumer Law Group says the grocery delivery platform only displays the delivery and service fees for the first time at the fourth stage of the transaction process.
“In essence, by only displaying the price of the order at the fourth stage, Maplebear charges a higher price than that advertised and displayed at the first stage of the transaction (excluding applicable taxes),” reads the lawsuit.
The law firm is accusing Instacart of “drip pricing” or “double ticketing,” a strategy where businesses advertise low prices only to include mandatory fees later, making the final cost higher than initially presented. This deceptive practice goes against the Competition Act, which recognizes drip pricing as “a harmful business practice.”
Who’s included in the proposed class action?
Instacart users in Canada (excluding Quebec) who have completed transactions on the site or mobile app and paid a higher price than initially advertised or indicated could be a part of this proposed class action.
The lawsuit is seeking compensatory damages in an amount corresponding to the difference between the delivery fee advertised for the delivery service option they respectively selected and the delivery fee actually charged by Maplebear.
It’s also seeking punitive damages for what it calls “problematic practices” even after settling a class action limited to Quebec residents on the same issue.
The class action still needs to be certified by a judge, and none of the claims have been proven in court.
Canadians who wish to join the class action and stay up to date can complete a form on the Consumer Law Group’s site.
Daily Hive has reached out to Instacart for comment.