DoorDash—DoorDash faced class action lawsuit for predatory pricing and deceptive fee practices
In April 2023, a class action lawsuit alleged that DoorDash bilked millions of consumers through an onslaught of hidden and deceptive fees, exploiting struggling restaurants and a largely immigrant workforce. The lawsuit alleged DoorDash charged consumers a 'city' or 'regulatory response fee' designed to appear as though imposed by local governments, when in fact it was a company-assessed fee to circumvent pandemic-era caps on delivery commissions. The suit also alleged anti-competitive pricing practices and misleading service fee structures.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Consumer Protection | -against | primary | -1.00 |
| Corporate Transparency | -against | secondary | -0.50 |
| Overall incident score = | -0.429 | ||
Score = avg(topic contributions) × significance (medium ×1) × confidence (0.57)
Evidence (1 signal)
Class action filed alleging DoorDash used predatory pricing and deceptive regulatory fees
A proposed class action lawsuit alleged DoorDash bilked millions of consumers through hidden fees, including a 'city' or 'regulatory response fee' that appeared to be government-imposed but was actually assessed by DoorDash to circumvent pandemic-era delivery commission caps. The lawsuit alleged consumers were scammed out of billions of dollars annually.