Canada’s antitrust watchdog sues DoorDash over prices, discounts

A Doordash delivery bag is seen in New York City on May 9, 2022. (Andrew Kelly/Reuters via CNN Newsource)

Canada’s Competition Bureau said on Monday it was suing DoorDash and its Canadian subsidiary for allegedly advertising misleading prices and discounts.

The bureau said in a statement it found that consumers were unable to purchase food and other items at the advertised price on DoorDash’s websites and mobile applications due to the addition of mandatory fees at checkout.

The bureau said it was suing to stop DoorDash from what it called deceptive price and discount advertising. It is seeking a penalty from the companies and wants them to offer restitution to affected consumers.

In response, DoorDash said it did not hide fees from consumers or mislead consumers and said the bureau was wrong.

“We believe that this ... is an overly punitive attempt to make an example of an industry leader in local commerce,” it said in a statement.

(Reporting by David Ljunggren; Editing by Mark Porter and Paul Simao)