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DoorDash 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
Doordash keeps charging g my account 9.99 3 to 4 times a month and haven’t used app in over a year I have proof
Please bring this back
Can the lawyes shoot me a email. I have something very important information.
Please add me
Count me in. Undisclosed fee.
Please add me to this case. I sent notices to TCA about a year ago stating my receipt from the restaurant is lower in prices then I was charged. Thanks
Purchased $34 food charged me 46
Doordash is stealing from customers.
Exactly they have been stealing from me this whole week smh I’m done with that company
DoorDash is now charging a delivery fee PLUS a “service” fee, plus they continue to inflate prices. I think they should be sued for double charging fees.,
I agree. I have ordered 3 times and I have just realized that. On the last order I completed my order and then I got an email that the charge was actually higher and it was charged to my card.
UPDATE: The DoorDash Price Mark-up class action lawsuit was voluntarily dismissed on July 26, 2016.
I think this authorization hold on orders is freakin ridiculous doordash adds an extra $5 to your orders total and it takes 2 or 3 days to return the $5 to your bank account I cant believe this legal come on DOORDASH! it’s bad enuff they charge a service fee a regulatory fee a delivery fee a small basket fee along with taxes and then the tip so a $13 order is now a $35 order leaving customers saying WTF!
Im going against doordash overcharged me 20 dollars everytime including the service charge and delivery
@Jason It’s not silly if you know how DoorDash works. They are facing lawsuits from multiple business owners who have had their entire menu uploaded on the site and had DoorDash mark it up without permission, with little to no legal recourse. They should be held accountable for this restaurant arbitrage, it’s not a ‘service fee’ as you said, it’s deceptive practice.
This lawsuit is just silly. I could care less about Doordash, we don’t have Doordash here. With that said, here is why I think it’s silly… So, this Leah Bassknight saw the prices for the food and delivery, then accepted to pay that price and have the food delivered. Then she was so shocked that the delivery company charged a fee for their service, that she is now suing them?
“Except where there is a prearranged deal with the restaurant” So if the restaurant is on-board its ok to charge extra for delivery, but if the restaurant is unrelated to the service it isn’t ok? Can someone explain the logic here? If the restaurant isn’t paying for the service, then who’s left to pay other than the person wanting the service… “the customer”
I’m not a lawyer, but I know the law and business very well. I know that this is nothing more than someone expecting free service like this 1960.
DoorDash charges EXTRA for the food + for delivery service (DoorDash itself) + Tax + Delivery Tip.
It is not obvious on where it say that Door Dash charges extra on the food. So when you look at the restaurant’s receipt for the food and the price of the food in the door dash invoice, it’s completely different.
You must not know law very well. Because DoorDash is a delivery service and not the restaurant owner legally they can not mark up food prices from these businesses.