Paul Tassin  |  April 20, 2016

Category: Consumer News

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DoorDash-logoDoorDash faces a proposed class action lawsuit over allegations that the food delivery service overcharges customers without their knowledge.

Plaintiff Leah Bassknight claims DoorDash charges customers an undisclosed mark-up on the food it delivers, over and above the disclosed fees and tips for delivery.

Bassknight says she placed orders for Thai food through DoorDash in November 2015 and January 2016. On both occasions, DoorDash allegedly charged her a mark-up of at least a few dollars, without her knowledge.

If she had known DoorDash would inflate the price of the food itself in addition to charging her a tip and delivery fee, Bassknight says she would not have ordered her food through DoorDash.

According to the class action lawsuit, DoorDash describes itself as an “on-demand delivery service” for restaurant food. Customers order their food either through the DoorDash website or smartphone app.

DoorDash has pre-arranged business relationships with some, but not all, of the restaurants it delivers from, the lawsuit says. In fact, Bassknight claims that some restaurant owners are not even aware that DoorDash offers to deliver their food. She cites instances of such restaurants suing DoorDash for trademark infringement.

The DoorDash class action lawsuit cites a blog post describing how the alleged hidden mark-up affected one particular transaction. The blog author writes that after her delivery driver left both the restaurant receipt and the DoorDash receipt with her food, she discovered the meal she paid DoorDash $28.42 for, actually cost $13.97 at the restaurant. The DoorDash receipt shows prices for each food item that are higher by a dollar or more than the prices on the restaurant receipt.

Since DoorDash is headquartered in California and allegedly conducts the bulk of its business in that state, Bassknight is filing her class action lawsuit there and seeking application of California consumer protection law. She alleges DoorDash’s actions violate the California Consumers Remedies Act, the Unfair Competition Law, and the False Advertising Law. She is also raising claims for unjust enrichment and violation of New York General Business Law.

If the proposed nationwide Class is certified, it will consist of everyone in the U.S. who was charged more than the current menu price for food delivered by DoorDash, except where the restaurant had a pre-arranged business relationship with DoorDash. Bassknight also proposes a subclass of such persons who received their food from a New York restaurant.

Bassknight seeks a damage award to include actual, statutory, treble and punitive damages, plus attorneys’ fees, court costs, and interest. She is also asking for a court order requiring DoorDash to end its allegedly unfair business practices and its purportedly deceptive means of keeping them concealed.

The plaintiff is represented by Rose F. Luzon and James C. Shah of Shepherd, Finkelman, Miller & Shah LLP, and by Daniel A. Schlanger and Patricia Kakalec of Kakalec & Schlanger LLP.

The DoorDash Price Mark-up Class Action Lawsuit is Bassknight v. DoorDash Inc., Case No. 3:16-CV-01853 in the U.S. District Court for the Northern District of California.

UPDATE: The DoorDash Price Mark-up class action lawsuit was voluntarily dismissed on July 26, 2016.

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20 thoughts onDoorDash Class Action Says Customers are Overcharged

  1. Ms. Collins says:

    I used a prepaid card like Cashapp to pay for my order. I was charged 20% more because it was a prepaid card. They said there was nothing they could do. I have used them for years with little to no issues on charges. Unfortunately, this will end our interactions.

  2. Jerod dow says:

    Same issues doordash had been charging my bank account 9.99$ on 3 different occasions Every month since 12/14/2021 I only found out today is now 2/24/2023 :( I don’t even know how to or even if I can address this and get my money back for unauthorized charges going back over a year…..

  3. Alvin Poe says:

    Doordash just charged my $46.74 for a order that totalled $38.95. WTF is wrong with these people? Then had the nerve to tell me I don’t qualify for a refund.

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