Competition Bureau Slams DoorDash with Lawsuit Over Hidden Fees [Update]

DoorDash is facing legal action from Canada’s Competition Bureau, which accuses the delivery giant of misleading customers with fake prices and surprise fees.

According to a lawsuit filed with the Competition Tribunal, DoorDash has been using “drip pricing” tactics — advertising low prices on its app and website, then adding a pile of mandatory fees at checkout. The Bureau says this practice has cost Canadians close to $1 billion since the company launched in the country.

Customers were hit with charges like service fees, small order fees, “expanded range” fees, and even so-called “regulatory response” fees — all added after the initial price was shown. The Bureau also says DoorDash designed some of the charges to look like taxes, even though they were created and collected entirely by the company.

The Competition Bureau is asking the tribunal to order DoorDash to stop advertising misleading prices, stop presenting company-imposed fees as if they were government taxes, pay a financial penalty, and refund customers who were affected.

“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,” said Matthew Boswell, Commissioner of Competition, in a statement.

This isn’t the first time the Bureau has gone after drip pricing. In 2024, Cineplex was fined $39 million for similar practices.

For now, the Bureau is warning other businesses to clean up their pricing or face similar consequences.

Update June 10, 2025: A DoorDash spokesperson told iPhone in Canada the following statement on Tuesday morning:

“Transparency with customers is a top priority at DoorDash. All fees on DoorDash, which support the high-quality operations of our platform, are clearly labeled and disclosed to consumers throughout the ordering process – including a final review before payment. To be crystal clear, DoorDash does not hide fees from consumers or mislead them in any way.

This application is a misguided and excessive attempt to target one of Canada’s leading local commerce platforms. It unfairly singles out DoorDash, and we intend to vigorously defend ourselves against these claims.”