The Competition Bureau of Canada filed a lawsuit against DoorDash on Monday because the company displayed false prices and discounts that disappeared when customers viewed their final checkout costs.
The regulatory agency initiated this lawsuit to prevent deceptive price and discount advertising while seeking compensation for Canadian consumers who were affected. The lawsuit targets DoorDash and its Canadian subsidiary because the actual checkout prices exceeded the initial advertised amounts.
The Competition Bureau failed to disclose both the amount of restitution it demands and the duration of the legal proceedings. The company failed to provide any immediate response to our request for comment.
Canadian regulators have launched this case as part of their efforts to combat hidden fees and deceptive advertising practices that affect e-commerce consumers who use digital platforms for food and household goods purchases.
DoorDash experienced fast growth during the pandemic but continues to face ongoing criticism regarding its fee policies and worker treatment after facing similar pricing investigations in the United States.
