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Canada’s Competition Bureau Sues DoorDash Over Alleged Hidden Fees

By  |  June 10, 2025

Canada’s federal Competition Bureau has launched legal action against food delivery giant DoorDash, alleging the company engaged in misleading pricing practices that deceived consumers. The case centers on the company’s use of what regulators describe as “drip pricing,” where additional mandatory fees are only revealed at the final stage of checkout.

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    Per a statement released by the Bureau, its investigation concluded that DoorDash advertised prices that did not reflect the full cost to consumers. Instead, customers were presented with lower upfront prices on the company’s website and mobile app, only to encounter further fees — some potentially mischaracterized as taxes — before completing their orders.

    According to a statement from the Bureau, this method of pricing “lacks transparency” and contravenes provisions in Canada’s Competition Act, which was updated in 2022 to specifically target drip pricing as a “harmful business practice.”

    “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 release.

    Read more: DoorDash to Acquire Deliveroo in $3.85 Billion Deal

    The Bureau contends that such practices mislead consumers and erode trust in online pricing, prompting it to pursue litigation against DoorDash as part of its broader efforts to uphold fair marketplace standards.

    In response to the legal filing, DoorDash defended its pricing model, rejecting the allegations. The company stated it does not obscure fees from customers nor mislead them, adding that it views the Bureau’s action as an unfair targeting of a major industry player. “We believe that this … is an overly punitive attempt to make an example of an industry leader in local commerce,” the company said in a statement provided to Reuters.

    The Competition Bureau emphasized that this action is consistent with its enforcement track record. According to a separate statement, the agency has previously challenged similar pricing tactics used by other companies. Notably, furniture retailers Leon’s and The Brick, as well as movie chain Cineplex, have faced scrutiny and rulings over the use of misleading or hidden fees.

    Source: Global News