Latest news with #MatthewBoswell
Global News
7 hours ago
- Business
- Global News
Canada's Competition Bureau sues DoorDash over customer prices
Canada's Competition Bureau is suing food delivery company DoorDash, alleging it misled customers on some prices and offers, including discounts. According to a release, the federal Competition Bureau says its investigation found that consumers ended up paying more than was advertised on the DoorDash website and mobile applications due to additional 'mandatory fees at checkout.' The bureau says this practice is commonly known as 'drip pricing,' and calls it 'deceptive' because the process lacks transparency. In some cases, the bureau says the additional 'fees' may be misclassified to customers as 'taxes.' 'Parliament has made it clear that businesses must not engage in drip pricing by advertising unattainable prices and then adding mandatory fees,' commissioner of competition Matthew Boswell said in a statement. 'Our litigation against DoorDash is another example of our efforts to ensure consumers are not misled and can trust the prices they see online.' Story continues below advertisement In response to Reuters, DoorDash said it did not hide fees from consumers or mislead consumers and that the Competition Bureau was wrong. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'We believe that this … is an overly punitive attempt to make an example of an industry leader in local commerce,' it said in a statement. 4:40 Consumer impact as DoorDash raises fees to offset new gig worker wages in B.C. The Competition Bureau notes that changes to the Competition Act in 2022 'explicitly recognize drip pricing as a harmful business practice.' DoorDash isn't the first company that has been put under the microscope by the Competition Bureau. Last year, the Competition Tribunal determined that furniture retailers Leons and The Brick used what it called deceptive marketing for some discount offers, and that Cineplex used similar methods with its online booking fees. Story continues below advertisement The Competition Bureau says it has filed an application with the Competition Tribunal, which will determine the next steps for DoorDash. It's unclear how much DoorDash may have to pay in fines, but the statement says that for close to a decade, the company has acquired 'nearly $1 billion in mandatory fees for consumers.' The Competition Bureau is also requesting that the tribunal force DoorDash to issue 'restitution' to affected customers, although it's not clear yet if or how those customers may be compensated. — with a file from Reuters.
Yahoo
10 hours ago
- Business
- Yahoo
Competition Bureau sues DoorDash for allegedly advertising misleading prices and discounts
GATINEAU, QC, June 9, 2025 /CNW/ - The Competition Bureau is taking legal action against DoorDash Inc., and its subsidiary DoorDash Technologies Canada Inc., for promoting their online delivery services at a lower price than what consumers actually have to pay. A Bureau investigation found that consumers were unable to purchase food and other items at the advertised price on DoorDash's websites and mobile applications due to the addition of mandatory fees at checkout. This practice is commonly known as drip pricing and is deceptive because consumers are not presented with an attainable price upfront. DoorDash charges consumers numerous mandatory fees to deliver orders made online, including service fees, delivery fees, expanded range fees, small order fees and regulatory response fees. As a result, consumers end up paying higher prices or receiving lower discounts than advertised. The company has been engaging in the alleged conduct for close to a decade, acquiring nearly $1 billion in mandatory fees from consumers. The Bureau also alleges that the way certain fees are represented on the company's platform give the impression that they are taxes, where, in reality, they are charges imposed at DoorDash's discretion. Today, the Bureau filed an application with the Competition Tribunal seeking, among other things, for DoorDash to: stop the deceptive price and discount advertising; stop portraying fees as taxes; pay a penalty; and issue restitution to affected consumers who purchased food and other items through DoorDash's platform. Quotes "Parliament has made it clear that businesses must not engage in drip pricing by advertising unattainable prices and then adding mandatory fees. The Competition Bureau has been fighting against this misleading practice for years. Our litigation against DoorDash is another example of our efforts to ensure consumers are not misled and can trust the prices they see online. We urge all businesses to review their pricing practices and make sure they comply with the law." Matthew Boswell Commissioner of Competition Quick Facts DoorDash Inc., and its subsidiary, DoorDash Technologies Canada Inc., operate an online delivery platform that connects consumers and merchants. The company enables consumers to order food and other items from local restaurants, grocery stores and convenience stores through their websites and mobile applications and facilitates delivery of those orders. Amendments to the Competition Act came into force on June 23, 2022, which explicitly recognize drip pricing as a harmful business practice. It is against the Competition Act to advertise unattainable prices that do not include mandatory fixed charges or fees unless those charges or fees are imposed by the government on purchasers, such as sales tax. In September 2024, the Competition Bureau won a deceptive marketing case against Cineplex for making false or misleading price representations by engaging in drip pricing. The Competition Tribunal ordered the company to pay $39 million and stop the conduct at issue. Prior to the June 2022 amendments, the Bureau has taken action against drip pricing for many years under the Deceptive Marketing Practices provisions of the Competition Act. The Bureau issued a consumer alert to raise awareness and reporting of drip pricing. We strongly encourage anyone who suspects that a company or individual is making false or misleading price claims to report it by using the Bureau's online complaint form. Associated Links Drip pricing and the Competition Act Deceptive marketing practices – Cases and outcomes Consumer and business alerts General information: Request for information | Complaint form Stay connected: X (Twitter) | Facebook | LinkedIn | YouTube | RSS Feed | Email Distribution List The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth. SOURCE Competition Bureau View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
Competition Bureau takes Canada's Wonderland to court over alleged 'deceptive marketing practices'
The Competition Bureau has filed an application against Canada's Wonderland for allegedly engaging in what is know as 'drip pricing.' It's a practice in which a company advertises 'lower prices than what consumers ultimately have to pay as those prices exclude mandatory fixed fees.' (Canada's Wonderland - image credit) The Competition Bureau says it is taking Canada's Wonderland to court because it alleges the company that runs the amusement and water park north of Toronto engages in "deceptive marketing practices." In a news release on Monday, the bureau accuses Canada's Wonderland Company of "drip pricing," a practice in which a company advertises "lower prices than what consumers ultimately have to pay as those prices exclude mandatory fixed fees." The bureau alleges that Wonderland, in particular, advertises items at a lower price than what consumers have to pay online. According to the bureau, drip pricing is considered "deceptive" because consumers are not presented with an "attainable" price upfront. "Canadians should always be able to trust the initial advertised price," Matthew Boswell, Commissioner of Competition, said in the release. ADVERTISEMENT "We're taking action against Wonderland because misleading tactics like drip pricing only serve to deceive and harm consumers. For years, we have urged businesses to display the full price of their products upfront. I remind all businesses to review their pricing claims to make sure they do not mislead consumers." Canada's Wonderland, located in Vaughan, Ont., is a subsidiary of the U.S.-based Six Flags Entertainment Corporation. The bureau's application against Wonderland was filed on Monday with the Competition Tribunal, and the bureau said it is seeking a ruling that would stop Wonderland from allegedly engaging in "deceptive price advertising," make Wonderland pay a penalty and issue restitution to affected consumers who paid for products through its website. In the release, the bureau said it alleges that Wonderland has made and continues to make "false or misleading price claims" by advertising lower prices than what consumers are ultimately charged because those prices do not include mandatory fixed fees. The bureau said it is against the Competition Act to advertise "unattainable" prices that do not include mandatory fixed charges or fees, unless those charges or fees are imposed by the government on purchasers. An example of such a fee imposed by the government would be the sales tax. ADVERTISEMENT According to the bureau, Wonderland charges a processing fee for online purchases of park admission. That fee starts at $6.99 and increases to $8.99 or $9.99, depending on the number of items purchased, the bureau said. For items that are not admission, it charges a single $0.99 processing fee, regardless of the number of items bought. Wonderland denies engaging in deceptive practices Wonderland, for its part, issued a statement on Monday saying the allegations made by the bureau are "unfounded" and the company will defend its "commitment to transparency and consumer value." It said it is committed to providing its guests with "clear information and meaningful choice." "Under Canadian law, 'drip pricing' refers to the practice of promoting something at one price, while concealing the real price from consumers until later in the purchasing process. Canada's Wonderland does not engage in this practice," Wonderland said in the statement. ADVERTISEMENT "From the outset, our guests receive disclosure of any applicable fees. We ensure customers understand exactly what they are purchasing. It is also important that we provide our guests options so that they may choose products, including ticket or Season Pass products, that best suit their preferences. This flexibility determines the level of processing fee they pay," the statement says. Wonderland said the bureau's demands to prohibit processing fees, including variable fees, would undermine consumer choice. "The Bureau is seeking to require static, all-inclusive pricing, an approach that can impose higher upfront prices for guests and reduced flexibility and choice," it said. "Canada's Wonderland remains dedicated to transparency, customer choice and compliance to the law. We'd like to thank our guests for their continued trust and support as we continue to advocate for your interests and defend our practices." A view of the Canada's Wonderland sign at night. (CBC) Bureau wants to help buyers, lawyer says Drip pricing is a violation of the Competition Act, said Nikiforos Iatrou, a partner at McCarthy Tetrault, speaking in general, and not on this particular case, on Monday. ADVERTISEMENT "Drip pricing is when a company is selling a good or a product and they advertise a particular price for that good or product. But then as you go through the buying process for that product, additional unavoidable fees are added to it," he said. "Now, there's always taxes and things like that that are added to prices, but this is for prices that aren't taxes or other mandatory fees that the government imposes." Iatrou said the bureau has looked at drip pricing in the case of car rentals, ticket prices for concerts and movies, and now it's looking at amusement parks. "Consumers — they have to make their buying decisions. And part of what the Competition Bureau is trying to do is make sure that the consumers have the right tools to make those decisions," he said. "And the Competition Act is designed, or an element of the Competition Act is there, to help promote this all in pricing to allow consumers to make these sorts of knowledgeable decisions." Wonderland, located on more than 120 hectares, has more than 200 attractions, including 18 roller coasters.
Yahoo
05-05-2025
- Business
- Yahoo
Competition Bureau takes Canada's Wonderland to court over alleged 'deceptive marketing practices'
The Competition Bureau says it is taking Canada's Wonderland to court because it alleges the company that runs the amusement and water park north of Toronto engages in "deceptive marketing practices." In a news release on Monday, the bureau accuses Canada's Wonderland Company of "drip pricing," a practice in which a company advertises "lower prices than what consumers ultimately have to pay as those prices exclude mandatory fixed fees." The bureau alleges that Wonderland, in particular, advertises items at a lower price than what consumers have to pay online. According to the bureau, drip pricing is considered "deceptive" because consumers are not presented with an "attainable" price upfront. "Canadians should always be able to trust the initial advertised price," Matthew Boswell, Commissioner of Competition, said in the release. "We're taking action against Wonderland because misleading tactics like drip pricing only serve to deceive and harm consumers. For years, we have urged businesses to display the full price of their products upfront. I remind all businesses to review their pricing claims to make sure they do not mislead consumers." Canada's Wonderland, located in Vaughan, Ont., is a subsidiary of the U.S.-based Six Flags Entertainment Corporation. The bureau's application against Wonderland was filed on Monday with the Competition Tribunal, and the bureau said it is seeking a ruling that would stop Wonderland from allegedly engaging in "deceptive price advertising," make Wonderland pay a penalty and issue restitution to affected consumers who paid for products through its website. In the release, the bureau said it alleges that Wonderland has made and continues to make "false or misleading price claims" by advertising lower prices than what consumers are ultimately charged because those prices do not include mandatory fixed fees. The bureau said it is against the Competition Act to advertise "unattainable" prices that do not include mandatory fixed charges or fees, unless those charges or fees are imposed by the government on purchasers. An example of such a fee imposed by the government would be the sales tax. According to the bureau, Wonderland charges a processing fee for online purchases of park admission. That fee starts at $6.99 and increases to $8.99 or $9.99, depending on the number of items purchased, the bureau said. For items that are not admission, it charges a single $0.99 processing fee, regardless of the number of items bought. Wonderland denies engaging in deceptive practices Wonderland, for its part, issued a statement on Monday saying the allegations made by the bureau are "unfounded" and the company will defend its "commitment to transparency and consumer value." It said it is committed to providing its guests with "clear information and meaningful choice." "Under Canadian law, 'drip pricing' refers to the practice of promoting something at one price, while concealing the real price from consumers until later in the purchasing process. Canada's Wonderland does not engage in this practice," Wonderland said in the statement. "From the outset, our guests receive disclosure of any applicable fees. We ensure customers understand exactly what they are purchasing. It is also important that we provide our guests options so that they may choose products, including ticket or Season Pass products, that best suit their preferences. This flexibility determines the level of processing fee they pay," the statement says. Wonderland said the bureau's demands to prohibit processing fees, including variable fees, would undermine consumer choice. "The Bureau is seeking to require static, all-inclusive pricing, an approach that can impose higher upfront prices for guests and reduced flexibility and choice," it said. "Canada's Wonderland remains dedicated to transparency, customer choice and compliance to the law. We'd like to thank our guests for their continued trust and support as we continue to advocate for your interests and defend our practices." Wonderland, located on more than 120 hectares, has more than 200 attractions, including 18 roller coasters.
CBC
05-05-2025
- Business
- CBC
Competition Bureau takes Canada's Wonderland to court over alleged 'deceptive marketing practices'
The Competition Bureau says it is taking Canada's Wonderland to court because it alleges the company that runs the amusement and water park north of Toronto engages in "deceptive marketing practices." In a news release on Monday, the bureau accuses Canada's Wonderland Company of "drip pricing," a practice in which a company advertises "lower prices than what consumers ultimately have to pay as those prices exclude mandatory fixed fees." The bureau alleges that Wonderland, in particular, advertises items at a lower price than what consumers have to pay online. According to the bureau, drip pricing is considered "deceptive" because consumers are not presented with an "attainable" price upfront. "Canadians should always be able to trust the initial advertised price," Matthew Boswell, Commissioner of Competition, said in the release. "We're taking action against Wonderland because misleading tactics like drip pricing only serve to deceive and harm consumers. For years, we have urged businesses to display the full price of their products upfront. I remind all businesses to review their pricing claims to make sure they do not mislead consumers." Canada's Wonderland, located in Vaughan, Ont., is a subsidiary of the U.S.-based Six Flags Entertainment Corporation. The bureau's application against Wonderland was filed on Monday with the Competition Tribunal, and the bureau said it is seeking a ruling that would stop Wonderland from allegedly engaging in "deceptive price advertising," make Wonderland pay a penalty and issue restitution to affected consumers who paid for products through its website. In the release, the bureau said it alleges that Wonderland has made and continues to make "false or misleading price claims" by advertising lower prices than what consumers are ultimately charged because those prices do not include mandatory fixed fees. The bureau said it is against the Competition Act to advertise "unattainable" prices that do not include mandatory fixed charges or fees, unless those charges or fees are imposed by the government on purchasers. An example of such a fee imposed by the government would be the sales tax. According to the bureau, Wonderland charges a processing fee for online purchases of park admission. That fee starts at $6.99 and increases to $8.99 or $9.99, depending on the number of items purchased, the bureau said. For items that are not admission, it charges a single $0.99 processing fee, regardless of the number of items bought. Wonderland denies engaging in deceptive practices Wonderland, for its part, issued a statement on Monday saying the allegations made by the bureau are "unfounded" and the company will defend its "commitment to transparency and consumer value." It said it is committed to providing its guests with "clear information and meaningful choice." "Under Canadian law, 'drip pricing' refers to the practice of promoting something at one price, while concealing the real price from consumers until later in the purchasing process. Canada's Wonderland does not engage in this practice," Wonderland said in the statement. "From the outset, our guests receive disclosure of any applicable fees. We ensure customers understand exactly what they are purchasing. It is also important that we provide our guests options so that they may choose products, including ticket or Season Pass products, that best suit their preferences. This flexibility determines the level of processing fee they pay," the statement says. Wonderland said the bureau's demands to prohibit processing fees, including variable fees, would undermine consumer choice. "The Bureau is seeking to require static, all-inclusive pricing, an approach that can impose higher upfront prices for guests and reduced flexibility and choice," it said. "Canada's Wonderland remains dedicated to transparency, customer choice and compliance to the law. We'd like to thank our guests for their continued trust and support as we continue to advocate for your interests and defend our practices."
