Uber Eats Canada is being sued in a new class action lawsuit that alleges the company has been drip pricing and charging hidden fees, following a lawsuit against DoorDash with similar allegations.
Court documents filed by Koskie Minsky LLP on May 16 allege that Uber Eats failed to disclose the true price of deliveries by only disclosing a hidden “service fee” at the final stage of the transaction.
The service fee is charged in addition to the delivery fee that is typically shown during the beginning stages of ordering.
The class action says that the service fee is often “obscured” under a line item known as “taxes and other fees,” an action known as “drip pricing.”
According to documents, the fee is fixed at a minimum of $2.00 and a maximum of $4.00.
According to documents, the class action lawsuit applies to “every resident in Canada, who on or after May 16, 2023, placed an order for delivery using Uber Eats and paid a Service Fee.”
In addition to the claims, the documents claim that Uber One customers have also been misled. Uber One users are not charged delivery fees after paying a subscription, however, the users are still being charged the service fee, the claims say.
According to the lawsuit, these actions violate the Competition Act and the Ontario Consumer Protection Act.
Canadians do not need to sign up to become a class action member, if the description applies to an individual then they are automatically considered a member, and will be affected by the outcome, however class members are able to opt out before the deadline.
DOORDASH ALLEGEDLY ADVERTISING MISLEADING PRICES AND DISCOUNTS
Uber Eats isn’t the only food delivery app facing a lawsuit, The Competition Bureau is taking legal action against DoorDash for allegedly promoting services at a lower price than what’s actually being paid for, according to a news release.
The bureau says it launched an investigation which found that the addition of mandatory fees at checkout prevent customers from paying prices that are being advertised on the company’s website and app.
This includes service fees, delivery fees, expanded range fees, small order fees, and regulatory response fees.
“The company has been engaging in the alleged conduct for close to a decade, acquiring nearly $1 billion in mandatory fees from consumers,” the release said.
The bureau is seeking Door Dash to stop the “deceptive” price and discount advertising, stop portraying fees as taxes, pay a penalty, and issue restitution to affected customers.
