Aldi Faces Class Action Over SNAP Delivery Fees

Two California law firms have sued Aldi, alleging the retailer charges illegal delivery, expedited fulfillment and convenience fees to customers who use Supplemental Nutrition Assistance Program (SNAP) benefits to buy groceries online through Instacart or Aldi Express.

The suit, filed in California Superior Court, seeks class-action status, according to a report on Law360. The lawsuit claims the additional service fees, which are allegedly charged for nonfood items, improperly affect low-income shoppers.

Neither of the law firms behind the case, James Hawkins APLC and The Markham Law Firm, could be reached for comment. An Aldi spokesperson also could not be reached.

The litigation arrives as retailers and delivery companies race to accept SNAP benefits for online orders. DoorDash said in June it had expanded SNAP payments for online ordering and delivery at all SNAP-eligible Dollar Tree locations. That move followed a similar DoorDash partnership with Dollar General that rolled out last year.

Aldi has been part of that shift for years. The retailer began accepting SNAP payments for online delivery orders via Instacart in November 2020, when COVID-era demand for grocery delivery soared. Aldi has long accepted SNAP payment in its stores.

The SNAP fee question has already drawn federal enforcement action in the grocery delivery space. Last year, Instacart agreed to pay $60 million in refunds to settle Federal Trade Commission charges that the company promoted free delivery while charging a service fee that could add as much as 15% to the cost of an order, among other allegations. Instacart denied any wrongdoing.

Aldi's own posted policy states that customers cannot use SNAP Electronic Benefit Transfer (EBT) cards to pay for non-SNAP-eligible items, tips, delivery fees, ordering fees or convenience fees on an online order. Customers must cover those charges, and any non-SNAP-eligible items, with another payment method such as a credit or debit card.

The plaintiffs' theory, as reported by Law360, is that the fees Aldi applies to SNAP-funded transactions violate those restrictions by imposing costs the benefits are not supposed to carry. If the court grants class-action status, the case could expose the discounter to claims across its California SNAP delivery customer base.

The outcome will carry weight for other grocers and delivery platforms. With DoorDash, Instacart and retailers like Dollar General and Dollar Tree expanding SNAP acceptance for delivery, the suit tests how service-fee models built for conventional shoppers hold up when applied to a payment system Congress designed to cover food, not fulfillment costs.