THE Competition Bureau announced on Monday it 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.

On Monday, 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.

Matthew Boswell, Commissioner of Competition, said: “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.”

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.