Aldi Faces Lawsuit Over SNAP Delivery Fees: What Shoppers Need to Know

What the Lawsuit Alleges

The lawsuit, filed in California Superior Court, asserts that Aldi charges delivery fees, convenience fees, and expedited fulfillment fees to customers paying with Supplemental Nutrition Assistance Program (SNAP) benefits through Instacart or Aldi Express. According to the complaint, these additional service charges disproportionately impact low-income households who rely on SNAP to purchase groceries online.

Aldi’s policy, as stated on its website, prohibits the use of SNAP Electronic Benefit Transfer (EBT) cards to cover non-food items, tips, delivery charges, ordering fees, or convenience fees. Customers must provide a separate payment method, such as a credit or debit card, for these charges. The lawsuit argues that this practice creates an unfair financial burden on SNAP users compared to other shoppers, effectively making online grocery shopping more expensive for those with the least financial flexibility.

Timeline of Aldi’s Online SNAP Acceptance

Aldi began accepting SNAP payments for online delivery orders through Instacart in November 2020, during the height of the COVID-19 pandemic when demand for grocery delivery surged. The retailer had long accepted SNAP in its physical stores, but bringing the program online was a response to changing shopping habits and increased accessibility needs. However, the decision to charge separate fees for service charges has now become the target of legal action.

The Broader Industry Context

This lawsuit arrives as more retailers and delivery platforms expand SNAP payment options. In June, DoorDash announced it had expanded SNAP payment availability across all SNAP-eligible Dollar Tree locations nationwide. A similar partnership between DoorDash and Dollar General launched the previous year, showing momentum in bringing SNAP benefits to online shopping channels.

The timing is significant: value-focused grocers like Aldi are under scrutiny as federal agencies and consumer advocates push for fairer online shopping practices. The industry is watching to see how courts will handle disputes over delivery fees and low-income access, which could set precedent for other chains.

History of Fee Disputes in Grocery Delivery

This case echoes earlier controversies surrounding delivery service fees. In 2024, Instacart agreed to pay $60 million in refunds to settle Federal Trade Commission allegations that the platform promoted free delivery while charging service fees that could add as much as 15 percent to order totals. Instacart denied any wrongdoing in that settlement, but the case illustrated growing regulatory concern about hidden or misleading fees in online grocery shopping.

The Aldi lawsuit raises similar questions: should low-income shoppers who use government benefits be required to absorb delivery and convenience charges that wealthier customers may skip by shopping in-store or finding other payment methods? Consumer advocates argue that SNAP delivery fees create a regressive burden.

What This Means for Shoppers

If the lawsuit succeeds, the outcome could reshape how Aldi and other retailers handle SNAP transactions online. Potential results include changes to fee structures, refunds to affected customers, or mandates to cover service charges from Aldi’s own margins rather than passing them to SNAP users.

For now, shoppers using SNAP benefits through Instacart or Aldi Express should be aware of current fee policies before completing online orders. Comparing the total cost, including service charges, against in-store shopping may help clarify the most affordable option for your household. Those who feel they have been wrongfully charged may also have options if the class-action suit moves forward.

The case underscores the importance of regulatory oversight in online grocery shopping, particularly for vulnerable populations. As retailers continue to expand digital channels, ensuring fair pricing and transparent fees for all customers, regardless of payment method, remains a critical issue for consumer advocates, policymakers, and shoppers alike.