Latest news with #drippricing
Globe and Mail
a day ago
- Business
- Globe and Mail
Competition Bureau sues DoorDash, alleging misleading price promotions
The Competition Bureau is taking legal action against DoorDash Inc. DASH-Q and its Canadian subsidiary, alleging the company promotes their online delivery services at a lower price than what consumers actually have to pay. The bureau said Monday that it had launched an investigation, finding that consumers could not purchase food and other items at the advertised price on DoorDash websites and apps owing to additional mandatory fees at checkout. This practice is what the bureau refers to as drip pricing and 'is deceptive because consumers are not presented with an attainable price upfront,' it said in a news release. The bureau alleges that certain fees presented on DoorDash platforms appear to be taxes, but are instead charges imposed at the company's discretion. The bureau filed its application against DoorDash with the Competition Tribunal, calling for the company to pay a penalty, end deceptive price and discount advertising, stop portraying fees as taxes, and issue a restitution to affected consumers who purchased items through DoorDash's platform. Trent Hodson, communications lead for DoorDash Canada, told The Globe and Mail in an e-mailed statement that transparency is a 'top priority' for the company and denied the allegations of misleading customers. The bureau's statement notes that 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. Opinion: Canada needs a wartime competition policy DoorDash has engaged in the alleged conduct of drip pricing for close to a decade, acquiring nearly $1-billion in mandatory fees from customers, according to the bureau. In one case, the bureau said, a customer in Quebec tried to order an item from a sushi shop through DoorDash that was originally advertised as $6.25, but could not purchase the item without paying the obligatory fees, including a $1.99 delivery fee and service fee ranging from $1.99 to $3.99. These charges appear to be in addition to tax fees. Throughout the order process, these types of fees are often hidden or are not in close proximity to the initially stated prices. The bureau uses this example to establish their argument that DoorDash omits or hides obligatory fees from the price representation until checkout, rendering the advertised price of $6.25 unattainable. 'The Competition Bureau has been fighting against this misleading practice for years,' Commissioner Matthew Boswell said in the release. 'Our litigation against DoorDash is another example of our efforts to ensure consumers are not misled and can trust the prices they see online.' Mr. Hodson of DoorDash Canada said in his statement that 'All fees on DoorDash, which support the high-quality operations of our platform, are clearly labeled and disclosed to consumers throughout the ordering process – including a final review before payment. 'To be crystal clear, DoorDash does not hide fees from consumers or mislead them in any way. [The Competition Bureau's] application is a misguided and excessive attempt to target one of Canada's leading local commerce platforms. It unfairly singles out DoorDash, and we intend to vigorously defend ourselves against these claims.' This is not the first time the bureau has sought legal action against a company alleging misleading prices. Last September, the bureau won a deceptive marketing case against Cineplex Inc. for engaging in drip pricing by adding a mandatory $1.50 online booking fee and ordered the company to pay a financial penalty of more than $38.9-million. Last June, the bureau reached an agreement with SiriusXM Canada to address concerns over a mandatory additional fee on subscription plans that increased the monthly cost by 10 to 20 per cent. Currently, the bureau is pursuing legal action against Canada's Wonderland for alleged false or misleading price claims.
CTV News
a day ago
- Business
- CTV News
Competition Bureau sues DoorDash, accuses firm of misleading customers with fees
A DoorDash sign is posted on the door of a Dunkin' Donuts franchise, Feb. 27, 2023, in Methuen, Mass. (AP Photo/Charles Krupa, File) TORONTO — Canada's competition watchdog is suing DoorDash Inc. and its Canadian subsidiary for marketing its online delivery services at a lower price than what consumers actually wind up paying. The Competition Bureau says an investigation found DoorDash customers were unable to purchase food and other items at prices advertised on DoorDash's websites and mobile apps because of mandatory fees added at checkout. The extra charges range from service and delivery fees to amounts sought for couriering things a further distance or placing smaller orders. The bureau says the charges were sometimes framed as if they were taxes and resulted in consumers paying higher prices than advertised, amounting to a deceptive practice known as drip pricing. The bureau alleges DoorDash used drip pricing for close to a decade, making nearly $1 billion from mandatory fees paid by customers. It wants the company to stop the practice, cease portraying fees as taxes, pay a penalty and issue restitution to affected consumers, but DoorDash says the requests are 'misguided' because it does not hide fees from consumers or mislead them in any way. This report by The Canadian Press was first published June 9, 2025. Tara Deschamps, The Canadian Press
CBC
a day ago
- Business
- CBC
Competition Bureau sues food delivery company DoorDash, alleging misleading price promotions
The Competition Bureau said on Monday that it is suing the online food delivery company DoorDash for allegedly misleading consumers by advertising its services at a lower price than what customers actually end up paying. "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," said the readout from the agency. "This practice is commonly known as drip pricing and is deceptive because consumers are not presented with an attainable price upfront." The bureau filed an application with the Competition Tribunal, which handles cases related to Canada's competition laws. It's seeking an outcome that would have DoorDash pay a penalty and compensate affected customers, in addition to ending what it refers to as "deceptive" price and discount advertising and the portrayal of fees as taxes.
National Post
06-05-2025
- Business
- National Post
Competition Bureau suing Canada's Wonderland over alleged 'drip pricing'
GATINEAU — The Competition Bureau is suing Canada's Wonderland for allegedly making false or misleading price claims online. The bureau says the amusement park north of Toronto is advertising prices that don't include a mandatory fee of up to $9.99. Article content Article content It says Wonderland charges a processing fee for online purchases involving park admission that depends on the number of items purchased. Article content Article content The bureau alleges Wonderland is advertising lower prices than what consumers ultimately have to pay, a practice known as drip pricing. Article content Article content It has filed an application with the quasi-judicial Competition Tribunal to stop the park's alleged deceptive price advertising, impose a penalty and have Wonderland issue restitution to affected consumers. Article content Canada's Wonderland says the Competition Bureau's allegations are unfounded and the park plans to defend its 'commitment to transparency and consumer value.' Article content 'From the outset, our guests receive disclosure of any applicable fees,' it said in a statement. 'We ensure customers understand exactly what they are purchasing.' Article content The park, owned and operated by the U.S.-based Six Flags Entertainment Corp., says that not only are the Competition Bureau's allegations 'unsubstantiated,' its demands to prohibit processing fees undermine consumer choice and flexibility. Article content '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,' the park said. Article content The Competition Bureau has in the past few years taken action against several companies it alleged were engaged in drip pricing, including Cineplex, SiriusXM Canada, Discount Car & Truck Rentals Ltd. and TicketNetwork. Article content It won a $38.9-million case in September against movie theatre giant Cineplex Inc., which it accused of drip pricing in its online ticket fees. Cineplex is now contesting the outcome. Article content
