Competition Bureau sues food delivery company DoorDash, alleging misleading price promotions

The Competition Bureau said on Monday that it is suing the online food delivery company DoorDash for allegedly misleading consumers by advertising its services at a lower price than what customers actually end up paying.

“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,” said the readout from the agency.

“This practice is commonly known as drip pricing and is deceptive because consumers are not presented with an attainable price upfront.”

The bureau filed an application with the Competition Tribunal, which handles cases related to Canada’s competition laws.

It’s seeking an outcome that would have DoorDash pay a penalty and compensate affected customers, in addition to ending what it refers to as “deceptive” price and discount advertising and the portrayal of fees as taxes.

Spokesperson Parker Dorrough told CBC News in an emailed statement that transparency is a “top priority” at the company and denied that DoorDash hides fees from consumers or misleads them.

“All fees on DoorDash, which support the high-quality operations of our platform, are clearly labeled and disclosed to consumers throughout the ordering process — including a final review before payment,” the statement read.

“To be crystal clear, DoorDash does not hide fees from consumers or mislead them in any way. This application is a misguided and excessive attempt to target one of Canada’s leading local commerce platforms. It unfairly singles out DoorDash, and we intend to vigorously defend ourselves against these claims.”