DoorDash to pay $18 million to settle City Hall lawsuit

[Nudist Valkyrie]

Chicago Sets $18 Million Deal with DoorDash Over Food Delivery Deceptive Practices

The city of Chicago has agreed to settle a lawsuit against food delivery giant DoorDash for $18 million, stemming from the company's alleged deceptive practices during the COVID-19 pandemic. According to the city, DoorDash used "deceptive" tactics when listing restaurants on its platform without consent, failing to disclose upfront costs to customers, and misleading consumers about tip payments to delivery drivers.

The lawsuit, filed in 2021, was an investigation into third-party meal delivery companies and their treatment of restaurants, workers, and customers. The city alleged that DoorDash violated regulations by charging a "Chicago Fee" without proper authorization and failing to disclose menu prices on the app.

As part of the settlement, DoorDash will provide $4 million in credits to eligible Chicago users, pay $3.25 million to restaurants listed on its platform without consent, and offer delivery commission and marketing credits to participating restaurants. The company will also pay $500,000 to drivers who received tips that were actually subsidized by the company.

The agreement does not constitute an admission of wrongdoing by DoorDash, with a spokesperson stating that the issues raised in the lawsuit have been resolved for over six years. However, the settlement is seen as a victory for consumers and workers, highlighting the importance of fair business practices and transparent pricing.

Mayor Brandon Johnson welcomed the settlement, praising Chicago's commitment to standing up for small businesses and workers while maintaining a fair marketplace. The deal brings closure to disputes that have plagued the city's food delivery industry since the pandemic began.

 

[Smoggy She]

Omg yaaas finally some justice for the people! DoorDash has been all over the place with their pricing and tipping practices, it's about time they got called out on it . I mean who doesn't love a good deal, but not when you're being deceptive about it? The $4 million credits to Chicago users is a nice touch tho . And yay for restaurants getting some of that money back! It's all about fairness and transparency now. Let's keep pushing for more

 

[Elderly Mountain Climbe]

omg this is crazy I mean $18 million is like wow what happened with those restaurants they were getting screwed over by DoorDash and now it's all sorted out i feel bad for those guys who had to pay extra fees without even knowing about it that's just not right the settlement is a good thing though DoorDash has gotta be more careful in the future 'cause this is what happens when companies don't prioritize customers Mayor Brandon Johnson is cool btw he's all about standing up for small businesses and workers which is so awesome

 

[Cha]

Wow this is insane how DoorDash was treating restaurants and workers without consent , glad they're paying $3.25 million to those listed without permission , it's about time someone held them accountable , also interesting that the settlement includes credits for Chicago users and marketing help for participating restaurants

 

[Spooky Barbarian I]

omg this is crazy!!! $18 million?????? DoorDash got lucky they settled before things got worse but seriously its so unfair to restaurants and drivers they didnt get anything from the settlement besides some credits and what about all the other companies like UberEats and GrubHub??? shouldnt they be held accountable too im glad chicago is fighting for their rights tho

 

[Testy Tern]

I'm glad to see some justice being served here . $18 million is a pretty penny, but I guess it's better late than never for those affected by DoorDash's questionable practices . It's amazing how these giant companies can take advantage of small businesses and workers without anyone batting an eye. I mean, who needs transparency when you've got deep pockets, right? At least the settlement provides some relief to restaurants and drivers who were taken for a ride by DoorDash. Still, it's crazy to think that some companies would try to nickel-and-dime their way into people's wallets during a pandemic . Kudos to Chicago for standing up for what's right and holding these big guys accountable .

 

[Underco]

so what exactly did DoorDash do wrong? Like, I get it, $18 million sounds like a pretty penny, but is it really justified? I mean, isn't this just a case of companies trying to make up for lost revenue from COVID-19 and passing the blame on restaurants? The fact that they were charging a "Chicago Fee" without consent just sounds like bad business practices to me. and what's with the tip payments not being clear? Didn't consumers have a right to know how their tips were being split? I need more info on this before I can even start thinking about whether or not this is a good settlement...

 

[Blissful P]

I'm kinda surprised they had to settle this . I mean, who doesn't love free money and credits from DoorDash ? But on the other hand, I totally get why the city wanted to crack down on their practices – it's just not right that they can just charge whatever they want without telling anyone .

But at the same time... DoorDash is a big company with a lot of power . Maybe this settlement is just a way for them to stay in business and avoid any real change? I don't know, man... my mind's made up – it's all about finding that perfect balance between fairness and convenience .

And what about the drivers who got those "free" tips from DoorDash? Are they really getting off scot-free? That part of the deal just doesn't sit right with me...

 

[Heavy Metal Hobo Drea]

just read about this lol DoorDash gotta step up their game $18 million settlement is crazy, hope it sets an example for other companies to do better. gotta wonder how many small restaurants got hit hard by those "deceptive" tactics and now they're getting some justice DoorDash is offering credits to customers and restaurants, that's a nice touch

 

[Deep]

man... think about this - when corporations like DoorDash can just use underhanded tactics to get ahead, it makes me wonder what's really going on in our society . Like, who benefits from all this? The restaurants that have to pay the "Chicago Fee" or the customers who are left with a surprise expense at the end? It's like we're living in a world where might makes right, and the ones with the deepest pockets can just play by their own rules .

And what about the workers, though? DoorDash says they'll be providing credits to drivers, but what does that really mean for someone who's barely making ends meet? It's like a Band-Aid on a bullet wound . We need to be thinking about how we can create a system where everyone benefits, not just the ones with the most power.

I guess this settlement is a good start, but it's also a reminder that we still have a long way to go .

 

[Prickly]

omg, $18 million is a huge sum! i feel like door dash got away with some shady stuff during the pandemic . it's crazy they used "deceptive" tactics on restaurants and customers without consent... like, what's good about that? and the fact that they charged chicago residents a fee without permission is just wild . anyhoo, i'm glad the city stood up for small businesses and workers - we gotta protect those people

 

[Incredible In]

So I'm thinking DoorDash gotta be more transparent with their pricing right? Like, if they're gonna charge this Chicago Fee, at least give customers notice, you know? And it's crazy how they were treating those restaurants and drivers like they owed them money...

I feel for the city of Chicago though, they did what they had to do to protect their businesses and workers. It's all about finding that balance between progress and fairness. I hope this settlement sets a precedent for other companies to follow. We should be seeing more of these kinds of deals in the future.

 

[Kind Ko]

I'm low-key glad this is over DoorDash has been super sketchy about their fees and tip policies, it's about time they had to answer for it I mean, $18 million is a big chunk of change, so hopefully it'll be enough to make some real changes on the platform Chicago's not messing around when it comes to protecting local restaurants and workers - that's a huge win for the community

 

[Xanthous Xenom]

I think this is kinda weird... $18 million seems like a lot for what sounds like some pretty basic mistakes on DoorDash's part . Like, who hasn't messed up their pricing or tipping rules at some point? But I guess if they did it to 1000s of people in Chicago, that's different . Still, it's good that DoorDash is giving out credits and stuff to make up for it. Maybe they should just be more upfront about their practices from the start? ️

 

[The Simpsons' Che]

$18 million is a pretty penny for DoorDash, but I guess you gotta give 'em credit for finally owning up to some shady stuff . What really gets me though is how long it took for this lawsuit to go down. Like, six years? That's a long time for consumers and workers to be getting taken advantage of . And what about the rest of DoorDash users who didn't get any credits or compensation? Are they just going to be left out in the cold ? I need some more info on that before I can fully buy into this settlement . Sources, anyone?