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DoorDash Files to Dismiss Canada’s Hidden-Fee Lawsuit

DoorDash’s motion contends customers always saw the nearly US$1 billion in added charges with options to avoid them before checkout.

A food delivery rider waits for the traffic light to change Monday, March 30, 2020, in Lone Tree, Colo.   (AP Photo/David Zalubowski, File)

Overview

  • On July 28, DoorDash asked the Competition Tribunal to throw out a Competition Bureau suit accusing it of nearly a decade of deceptive drip pricing.
  • Competition Commissioner Matthew Boswell alleges DoorDash collected almost US$1 billion in mandatory service, delivery and distance surcharges hidden until checkout.
  • In its filing, DoorDash argues that all fees were prominently displayed throughout its apps and websites and that the full ‘all-in’ price appeared before order confirmation.
  • The company says customers could bypass fees by choosing pickup, subscribing to DashPass, using free-delivery promotions or expanding small orders.
  • Under tribunal rules, the Competition Bureau must file its reply within 14 days of DoorDash’s submission.