The Competition Bureau has filed an application with the Competition Tribunal against DoorDash Inc. and its Canadian subsidiary, alleging the food delivery company engaged in deceptive pricing practices that misled consumers.
According to the Bureau’s investigation, DoorDash has promoted its delivery services at prices lower than what customers ultimately pay. The Bureau claims that the advertised prices on DoorDash’s website and mobile app fail to include mandatory fees added during checkout, a practice referred to as “drip pricing.”
These undisclosed charges include service fees, delivery fees, small order fees, expanded range fees, and regulatory response fees. Over nearly ten years, the Bureau estimates DoorDash has collected close to $1 billion in such fees from consumers.
The legal filing also states that some fees are presented in a way that may lead customers to believe they are government-imposed taxes, when they are, in fact, charges determined by DoorDash itself.
The Bureau is seeking several remedies through the Tribunal: an end to the allegedly misleading advertising, clearer fee disclosures, financial penalties, and restitution for affected customers.
This case follows amendments made to the Competition Act in June 2022, which explicitly categorize drip pricing as a prohibited practice unless the added charges are government-imposed. It is illegal under the Act to promote prices that are unattainable due to undisclosed, fixed fees.
The Bureau’s Commissioner, Matthew Boswell, emphasized the broader implications of the case. “Parliament has made it clear that businesses must not engage in drip pricing by advertising unattainable prices and then adding mandatory fees,” he said, encouraging businesses to review their pricing policies.
This is not the first time the Bureau has acted against drip pricing. In September 2024, Cineplex was ordered to pay $39 million for similar conduct.