The Competition Bureau of Canada has initiated legal proceedings against DoorDash Inc. and its subsidiary, DoorDash Technologies Canada Inc., for allegedly misleading consumers with deceptive pricing practices. The Bureau's investigation revealed that consumers were unable to purchase items at the advertised prices on DoorDash's platforms due to the addition of mandatory fees at checkout, a practice known as drip pricing.

DoorDash reportedly charges various mandatory fees, including service fees, delivery fees, and small order fees, which inflate the final price consumers pay. This practice has been ongoing for nearly a decade, resulting in DoorDash collecting close to $1 billion in these fees from consumers. The Bureau also claims that some fees are presented in a way that misleads consumers into thinking they are taxes, when in fact, they are discretionary charges imposed by DoorDash.

In response to these findings, the Bureau has filed an application with the Competition Tribunal, seeking to compel DoorDash to cease its deceptive advertising practices, stop misrepresenting fees as taxes, pay penalties, and provide restitution to affected consumers. The Bureau emphasizes that such practices violate the Competition Act, which prohibits advertising unattainable prices without disclosing mandatory fees.

Matthew Boswell, Commissioner of Competition, stated that the Bureau has been actively combating drip pricing and is committed to ensuring that consumers can trust the prices they see online. The Bureau's actions against DoorDash are part of a broader effort to hold businesses accountable for misleading pricing practices.