The Competition Bureau is taking legal action against DoorDash Inc., and its subsidiary DoorDash Technologies Canada Inc., for promoting their online delivery services at a lower price than what consumers actually have to pay.
A Bureau investigation found that consumers were unable to purchase food and other items at the advertised price on DoorDash's websites and mobile applications due to the addition of mandatory fees at checkout. This practice is commonly known as drip pricing and is deceptive because consumers are not presented with an attainable price upfront.
DoorDash charges consumers numerous mandatory fees to deliver orders made online, including service fees, delivery fees, expanded range fees, small order fees and regulatory response fees. As a result, consumers end up paying higher prices or receiving lower discounts than advertised. The company has been engaging in the alleged conduct for close to a decade, acquiring nearly $1 billion in mandatory fees from consumers.
The Bureau also alleges that the way certain fees are represented on the company's platform give the impression that they are taxes, where, in reality, they are charges imposed at DoorDash's discretion.
Today, the Bureau filed an application with the Competition Tribunal seeking, among other things, for DoorDash to:
- stop the deceptive price and discount advertising;
- stop portraying fees as taxes;
- pay a penalty; and
- issue restitution to affected consumers who purchased food and other items through DoorDash's platform.
