News Summary

Canada’s Competition Bureau has initiated a lawsuit against DoorDash, the San Francisco-based food delivery app, and its Canadian subsidiary, for allegedly engaging in deceptive ‘drip pricing’ practices. The Bureau claims that DoorDash advertised lower prices on its platforms but added mandatory fees at checkout, misleading consumers and resulting in nearly $1 billion in acquired fees over close to a decade. The lawsuit seeks to halt these practices, portraying fees as taxes, and demands restitution for affected customers. This legal action follows recent amendments to the Competition Act, which aim to curb such practices. DoorDash, however, disputes these claims, asserting that all fees are disclosed during the ordering process. The case highlights Canada’s increasing regulatory actions against major tech companies, as seen in recent cases against Google and TikTok.