Chipotle Faces Class Action Lawsuit Over ‘Hidden’ Delivery Fees 

A Chipotle customer is suing the burrito giant over its “free delivery” claims. 

The class action lawsuit filed in New York federal court Monday by plaintiff John Dundon claims that the Mexican food chain adds a 10% “service charge” to delivery orders, effectively making its ‘free’ or ‘$1’ delivery advertisements untrue and misleading, Law360 reported.

For example, a $50 food order would allegedly incur a $5 “service charge” that you wouldn’t be charged for pick-up.

“The true delivery costs are obscured … and far exceed the prominent ‘free’ or ‘$1’ promises,” Dundon said in the complaint.

He also claimed Chipotle “secretly” marks up the price of its burritos, tacos and quesadillas when customers order them for delivery. He alleged the secret markups were around 12-15% more than if you ordered to pick up in store.

Dundon said he ordered a sofritas tofu burrito bowl to be delivered and was charged $10.10 for it. The delivery occurred in Sept. 2020. He claimed he would have been charged more than a dollar less if he’d opted to pick it up in store. He also noted a $2.86 ‘service fee’ on his order, the lawsuit stated.

“Both of these hidden delivery upcharges make Chipotle’s ‘free’ or ‘$1’ delivery promises patently false,” Dundon said. 

Chipotle is not transparent about its advertised ‘free’ or ‘$1’ delivery fee versus its actual fee, and if it were, customers would make different decisions, Dundon said.

According to the lawsuit, when ordering delivery online a customer has to click on the line item ‘taxes and fees’ when ordering delivery to discover there is a service fee of 10% of the total food cost.

Chipotle also gains an unfair advantage over its competitors by obscuring its true delivery costs, the lawsuit stated. 

Dundon said Chipotle competitors Del Taco and El Pollo Loco both prominently represent their true delivery fees. He is suing the food chain for deceptive acts or practices in violation of New York business law and fraud

The lawsuit seeks to represent both a New York class and a nationwide class of customers who ordered food delivery through the Chipotle app or website and got higher delivery charges than they were promised. Dundon is seeking an injunction, restitution, damages and attorneys fees.

Meanwhile, Both New York City and New York state lawmakers have recently passed measures to limit delivery fees from third-party food delivery apps. 

These measures aim to protect consumers from abusive or hidden fees which can sharply increase the cost of their delivery order. Here’s everything you need to know about food delivery fees. 

Have you been hit with fees you weren’t expecting when ordering food to be delivered? 

Right now, attorneys are interested in speaking to customers in Massachusetts and New York who were charged hidden delivery fees by certain restaurants. Click through to see if you qualify. 

The plaintiff is represented by Jeffrey D. Kaliel and Sophia Goren Gold of Kaliel PLLC.

The Chipotle Hidden Delivery Fees Class Action Lawsuit is John Dundon v. Chipotle Mexican Grill Inc., Case No. unavailable, in the U.S. District Court for the Northern District of New York.

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