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

Jenna Benchetrit · CBC News

· Posted: Jun 09, 2025 12:10 PM EDT | Last Updated: 3 hours ago

The Competition Bureau said connected Monday that it is suing the online nutrient transportation institution DoorDash and its Canadian subsidiary for allegedly misleading consumers by advertizing its services astatine a little terms than what customers really extremity up paying.

"A Bureau probe recovered that consumers were incapable to acquisition nutrient and different items astatine the advertised terms connected DoorDash's websites and mobile applications owed to the summation of mandatory fees astatine checkout," said the connection from the agency.

"This signifier is commonly known arsenic drip pricing and is deceptive due to the fact that consumers are not presented with an attainable terms upfront."

The bureau filed an exertion with the Competition Tribunal, which handles cases related to Canada's contention laws.

It's seeking an result that would person DoorDash pay a punishment and compensate affected customers, successful summation to ending what it refers to arsenic "deceptive" terms and discount advertizing and the portrayal of fees arsenic taxes.

The bureau told CBC News successful an email that it "continues to examine" akin issues successful the nutrient transportation industry, and volition "take enactment arsenic necessary."

Company spokesperson Parker Dorrough told CBC News successful an emailed connection that transparency is simply a "top priority" astatine DoorDash and denied that it hides fees from consumers oregon misleads them.

"All fees connected DoorDash, which enactment the high-quality operations of our platform, are intelligibly labeled and disclosed to consumers passim the ordering process — including a last reappraisal earlier payment," the connection read.

"To beryllium crystal clear, DoorDash does not fell fees from consumers oregon mislead them successful immoderate way. This exertion is simply a misguided and excessive effort to people 1 of Canada's starring section commerce platforms. It unfairly singles retired DoorDash, and we mean to vigorously support ourselves against these claims."

Travel booking industry 'good candidates' for akin cases

Delivery services are a "bigger and bigger piece" of however Canadians interact with the economy, said Keldon Bester, the enforcement manager of the Canadian Anti-Monopoly Project.

"It's important that we person just contention and transparent pricing successful this area," helium says, noting that different "middle-men" businesses — similar question booking and different transportation services — are "good candidates" for these kinds of investigations.

He described drip pricing arsenic a signifier successful which the advertised terms of a merchandise oregon work isn't really the afloat amount, with a institution hiding oregon delaying fees until aboriginal connected successful the acquisition process to distort the existent price.

As for wherefore the Competition Bureau would people DoorDash but not its rivals, Bester said that contention laws are often utilized to marque an illustration of 1 institution to deter the remainder of the marketplace from engaging successful akin behaviour.

The extremity is that if the bureau is successful, "other companies with akin practices... they'll spot this and alteration their ways oregon look consequences successful the future."