Competition Bureau Files Lawsuit Against DoorDash for Alleged Customer Fee Misleading Practices

Canada’s federal competition regulator has launched legal action against DoorDash Inc. and its Canadian arm, accusing the food delivery giant of advertising lower prices than customers end up paying at checkout. The watchdog alleges that DoorDash’s online platforms systematically displayed food and product prices that excluded additional mandatory fees, resulting in higher overall costs for consumers.

According to investigators, users of DoorDash’s website and mobile applications were consistently unable to purchase items at the prices initially shown. At checkout, a range of extra charges—including service and delivery fees, surcharges for longer distances, and fees for smaller orders—were applied. In some cases, the bureau claims these add-ons were labelled or presented as taxes, further obscuring the true cost of orders. This pricing model, known as drip pricing, is considered a deceptive marketing practice under Canadian law.

The legal complaint contends that DoorDash engaged in drip pricing practices over nearly ten years, collecting close to $1 billion from mandatory fees charged to Canadian customers. The Competition Bureau asserts that this conduct not only distorted consumer perception but also skewed competition in the online food delivery marketplace.

Regulators are seeking an immediate end to DoorDash’s alleged pricing tactics and want the company barred from misrepresenting service fees as taxes. Additionally, authorities are calling for financial penalties and restitution to consumers who may have overpaid due to the disputed practices. In response, DoorDash issued a statement describing the requests as “misguided,” strongly denying any purposeful concealment or misrepresentation of charges. The company maintains it provides full transparency regarding fees to all users before they complete their orders.

This legal confrontation highlights growing scrutiny of online service platforms and their pricing transparency, raising important questions about how digital marketplaces communicate costs to Canadians. The outcome could have significant implications for both consumers and businesses operating in the competitive food delivery sector.