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Competition Bureau Sues DoorDash Over Nearly a Decade of Deceptive Checkout Fees

The filing seeks penalties, restitution under Canada’s competition law to address nearly $1 billion in hidden fees tacked on at checkout.

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DoorDash has been accused of being dishonest with customers.
A Doordash sticker is seen on a window in Brooklyn on Dec. 4, 2020, in New York City. Canada's Competition Bureau said on Monday that it is suing the food delivery company for allegedly misleading consumers by advertising its services at a lower price than what customers actually end up paying.
In this Feb. 27, 2020, file photo, the DoorDash app is shown on a smartphone in New York.

Overview

  • The Bureau alleges DoorDash advertised base prices without upfront disclosure of service, delivery, expanded-range, small-order and regulatory response fees.
  • The Bureau’s investigation traced the drip-pricing practice back nearly ten years, suggesting enduring consumer harm.
  • Some additional charges were presented as taxes on DoorDash’s platform despite being discretionary fees imposed by the company.
  • The application filed with the Competition Tribunal calls for an order to end misleading price promotions and improper fee displays.
  • If the tribunal rules in its favor, the Bureau will seek court-imposed penalties and restitution payments to affected customers.