Door Dash is facing allegations from Canada’s Competition Bureau that it misled consumers with hidden mandatory charges that inflated prices by as much as 15% over what was advertised. Blacklock's Reporter says the U.S.-based food delivery company has denied any wrongdoing and says it will fight the case.In a Notice of Application filed this week, the bureau claimed Door Dash earned nearly $1 billion in Canada over the past decade through a range of obligatory fees that were not properly disclosed up front. The bureau is seeking repayment, legal costs, and penalties as determined by the Competition Tribunal.“Consumers were unable to purchase food and other items at the advertised price on Door Dash websites and mobile applications due to the addition of mandatory fees at checkout,” wrote the bureau.It said the practice, known as “drip pricing,” misleads customers by only revealing the true cost at the final stage of ordering.Door Dash Canada responded with a statement calling the investigation “an overly punitive attempt to make an example of an industry leader.” The company insisted that all fees are clearly disclosed and necessary to fund the platform and pay drivers.The bureau said Door Dash applies multiple charges — including service fees of 11% to 21%, flat delivery fees, small order fees of up to $3, and other costs tied to distance or regulation — resulting in customers paying far more than the initial advertised price.The action is part of a broader effort to rein in misleading digital pricing practices. In 2018, the bureau reached $4.25 million in settlements with three major rental car companies for tacking on fees disguised as taxes, which added up to 27% to some bills.
