DoorDash Faces Legal Action Over Alleged ‘Drip Pricing’ Practices

By GLORY

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The Competition Bureau of Canada, an independent law enforcement agency responsible for overseeing and promoting fair competition in the Canadian marketplace, is taking legal action against DoorDash and its Canadian arm for what it alleges is misleading pricing. The core issue: customers are shown one price upfront, but face additional mandatory fees at checkout — a tactic known as drip pricing.

The Bureau argues this pricing model prevents consumers from making informed decisions and distorts market transparency. It’s seeking financial penalties, customer compensation, and a halt to the practice.

DoorDash, for its part, denies the claim.

This case is part of a broader focus by regulators on the digital platforms shaping consumer behaviour. In a separate but related case, Cineplex was hit with a record $38.9 million penalty by the Competition Tribunal for how it displayed its $1.50 online booking fee. The fee, which applies to customers not enrolled in its loyalty programs, was found to be insufficiently disclosed during the ticket-buying process. While Cineplex is appealing the decision, it has agreed to update its online checkout to make the charge more transparent—acknowledging that the issue was one of presentation, not pricing.

As Canadians increasingly rely on platform-driven services, the outcome of this case could redefine how businesses communicate value — and how consumers measure trust.

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