ACTIS LAW GROUP is lead counsel in the class action lawsuit against DoorDash for marketing its online delivery services at a lower price than what consumers actually wind up paying. This is called “drip pricing”.

The Competition Bureau has announced the results of an investigation which found that DoorDash customers were unable to purchase food and other items at the advertised prices on DoorDash’s websites and mobile apps due to mandatory fees added at the checkout stage. The Competition Bureau

The extra charges range from service and delivery fees to amounts charged for delivering items over a greater distance or for placing smaller orders.

According to the Bureau, the charges were sometimes presented as taxes, resulting in consumers paying higher prices than advertised. This is a deceptive practice known as “drip pricing” a sales tactic in which customers are shown an initial lower price, with additional fees added later in the purchasing process. These included delivery costs as well as obligatory “regulatory response” and “expanded range” fees.

The Bureau alleges that DoorDash used drip pricing for close to a decade, generating nearly $1 billion from mandatory fees paid by customers.

In addition, the investigation found that the company had combined service fees and taxes into a single item on a user’s bill, which it said was “false or misleading as it requires an extra click for the consumer to actually see that the ‘fees and estimated taxes’ are two separate charges, only one of which is imposed by the government on the purchaser and not the other.”

The Competition Bureau wants DoorDash to stop these practices, stop portraying fees as taxes, pay a penalty and issue restitution to affected consumers. However, DoorDash claims that the requests are “misguided” as it does not hide fees from consumers or mislead them in any way.

The Competition Bureau has filed a lawsuit against DoorDash for its practices, which are in violation of the Canadian Competition Act.

Actis Law Group believes that action must be taken on behalf of the millions of people who were unknowingly subjected to DoorDash’s misleading price advertising. The lawsuit seeks to represent anyone who has placed an order using the DoorDash platform and were charged more than the base advertised price.

If you or someone you know has used the DoorDash’s services and you wish to obtain more information on potential compensation or to be kept advised of the status of the class action litigation or any resulting compensation, please provide your contact information to our law firm using the form below.