Is DoorDash Misleading You? Lawsuit Says it Is
(KMDL-FM) The most popular food delivery service in Louisiana is under scrutiny over allegations that it misleads consumers about final prices and fees. The delivery service DoorDash is the subject of a lawsuit filed by the Competition Bureau. That suit accuses the company of a practice known as "drip pricing."
If you're not familiar with the term, drip pricing is a sales technique in which a company only advertises a portion of a product's price on the front end. But as the consumer works through the purchase process, other charges are "revealed" and then added to the final total.
What is Drip Pricing and is it Legal?
I have to admit, it certainly sounds like every delivery purchase that I have ever made, not just from DoorDash but from Uber Eats, and the once-upon-a-time original food delivery service in Louisiana, Waitr. I have seen with my own eyes how a $10 meal turns into a $15 or $16 meal by the time it gets to my door, and that's not including a tip for the delivery driver.
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To be honest, I didn't pay a lot of attention to any "extra charges" that were added on, and I believe most of us don't which is why the Competition Bureau has filed the lawsuit to make sure that companies, such as DoorDash, make the final price of a product or service as plain as the nose on our faces.
Ticketmaster Sued Over Deceptive Pricing Practices
You might recall that another business, Ticketmaster, has been scrutinized for similar actions. We've all heard the commercials proclaiming "Kids Seats $5," only to find out that the final price is closer to $20 after all the fees and "convenience charges" are added to the final price.
The issues with Live Nation-Ticketmaster were so egregious that the Justice Department filed suit against the company in May of 2024 and has threatened to break up what DOJ calls a "monopoly". That litigation is still happening. Meanwhile, Ticketmaster has quietly launched a new service called All in Pricing, which shows consumers the final price, including fees and other charges, up front.
Meanwhile, in response to the DoorDash suit, the company released a statement that suggested the company is transparent with all of its customers. The statement suggested that all fees and prices are clearly labeled on the platform for consumers to see, including a final review of all charges before payment is accepted.
Incidentally, the Competition Bureau is an independent law enforcement agency that works for the benefit of Canadian Consumers, so this lawsuit has been filed in Canada. I am certain that based on the outcome of the litigation, there could be similar cases brought against DoorDash in the United States.
In the meantime, our advice would simply be to know what you're buying and what you're paying for it before you hit the "Pay" button. And then ask yourself, am I really that lazy to drive a few blocks for a sandwich? Or even worse, am I really that lazy that I can't walk a few steps to my kitchen and make my own sandwich? Of course, my answer is "yes" to both of those.
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