DoorDash, a popular food delivery platform, is under fire following a lawsuit filed by Canada’s Competition Bureau, alleging the company engaged in ‘drip pricing’, a deceptive practice that misleads customers by advertising lower prices than what they ultimately pay.
The claims suggest DoorDash amassed nearly $1 billion in hidden fees over a decade.
What Is the ‘Drip Pricing’ Allegation?
The Competition Bureau filed an application with Canada’s Competition Tribunal, accusing DoorDash and its Canadian subsidiary of drip pricing, where advertised prices exclude mandatory fees revealed only at checkout. The Bureau claims customers cannot purchase items at the promoted price due to fees like service, delivery, expanded range, small order, and regulatory response fees.
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The Bureau added that it estimates DoorDash collected nearly $1 billion in mandatory fees from Canadian consumers over nearly a decade. The lawsuit seeks penalties, an end to deceptive pricing, cessation of misrepresenting fees as taxes, and restitution for affected customers.
DoorDash’s Response
DoorDash called the lawsuit ‘misguided and excessive’, denying it hides fees or misleads customers. “Transparency with customers is a top priority at DoorDash. All fees on DoorDash, which support the high-quality operations of our platform, are clearly labeled and disclosed to consumers through the ordering process — including a final review before payment. To be crystal clear, DoorDash does not hide fees from consumers or mislead them in any way,” a spokesperson told The Street.
{{/usCountry}}DoorDash called the lawsuit ‘misguided and excessive’, denying it hides fees or misleads customers. “Transparency with customers is a top priority at DoorDash. All fees on DoorDash, which support the high-quality operations of our platform, are clearly labeled and disclosed to consumers through the ordering process — including a final review before payment. To be crystal clear, DoorDash does not hide fees from consumers or mislead them in any way,” a spokesperson told The Street.
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The Bureau said its investigation found that fees are often hidden or not displayed near advertised prices until checkout. A 2023 t.-action lawsuit in the US similarly alleged DoorDash’s fees, including ‘city’ or ‘regulatory response’ charges, mislead consumers into believing they’re government-imposed. These fees, kept by DoorDash, circumvent local fee caps, the suit claimed.