Door Dash is pushing back against a federal Competition Bureau investigation, calling the government’s case an “unprecedented and legally unsubstantiated” attempt to outlaw how service fees are advertised in Canada.Blacklock's Reporter says in filings to the Competition Tribunal, lawyers for the California-based delivery giant argued the case could reshape pricing practices nationwide. The bureau’s position, they said, would require all advertised prices to be fully all-inclusive — excluding only taxes — regardless of how or when fees are disclosed..The Competition Bureau alleged in a June 8 filing that Door Dash misled consumers over a 10-year period, collecting nearly $1 billion through hidden or unclear fees. The bureau said users were frequently charged 15% more than the advertised price due to various add-ons at checkout, including service fees between 11% and 21%, small order fees of up to $3, flat delivery charges, and range-based surcharges.“These fees are not disclosed in the advertised price, meaning consumers are unable to purchase items for the price initially presented,” the Bureau claimed. It labeled the practice “drip pricing,” calling it deceptive and a violation of the Competition Act..Door Dash denied the allegations, insisting the company’s pricing is transparent and familiar to most users. “Door Dash’s fees are displayed prominently and repeatedly,” lawyers wrote, adding that customers have the option to skip delivery fees by choosing pickup.The company called the bureau’s stance an overreach and said the law does not prohibit separate service charges, particularly when they are clearly communicated.“Ordinary users understand fee-based pricing structures and are not misled,” Door Dash said in its response.Door Dash Technologies Canada, the company’s local arm, said in an earlier statement it plans to fight the case vigorously. “We believe this application is an overly punitive attempt to make an example of an industry leader in local commerce,” the company said.
