Chicago Settles with DoorDash Over Allegations of Deceptive Business Practices
A long-standing lawsuit against food delivery giant DoorDash has finally come to a close, with the city of Chicago agreeing to accept an $18 million settlement. The city had claimed that DoorDash engaged in deceptive business practices during the COVID-19 pandemic, including listing restaurants on its platform without their consent and imposing surcharges on customers.
According to the complaint filed by the city in 2021, DoorDash violated local regulations by featuring restaurants on its platform without permission from the establishments. The company also allegedly failed to disclose upfront costs to customers, imposed a "Chicago Fee" that was not mandated by the city, and misled consumers about menu prices on the app.
The city had accused DoorDash of misleadingly telling customers that they were tipping drivers directly when in fact the company used tips to subsidize driver pay. This practice has already been resolved through a previous settlement with the Illinois Attorney General's office.
As part of the settlement, DoorDash will provide credits to eligible Chicago users, pay out millions of dollars to restaurants listed on its platform without consent, and settle claims from drivers who were affected by the company's alleged tip-subsidizing practice.
While a DoorDash spokesperson has stated that this settlement is not an admission of wrongdoing and that many of the complaints have already been resolved, Mayor Brandon Johnson said in a statement that the agreement demonstrates the city's commitment to protecting workers and small businesses while maintaining a fair market. The terms of the settlement were not made public by the company, but they include provisions for refunds, payments to restaurants and drivers, and payment of legal fees to the city.
A long-standing lawsuit against food delivery giant DoorDash has finally come to a close, with the city of Chicago agreeing to accept an $18 million settlement. The city had claimed that DoorDash engaged in deceptive business practices during the COVID-19 pandemic, including listing restaurants on its platform without their consent and imposing surcharges on customers.
According to the complaint filed by the city in 2021, DoorDash violated local regulations by featuring restaurants on its platform without permission from the establishments. The company also allegedly failed to disclose upfront costs to customers, imposed a "Chicago Fee" that was not mandated by the city, and misled consumers about menu prices on the app.
The city had accused DoorDash of misleadingly telling customers that they were tipping drivers directly when in fact the company used tips to subsidize driver pay. This practice has already been resolved through a previous settlement with the Illinois Attorney General's office.
As part of the settlement, DoorDash will provide credits to eligible Chicago users, pay out millions of dollars to restaurants listed on its platform without consent, and settle claims from drivers who were affected by the company's alleged tip-subsidizing practice.
While a DoorDash spokesperson has stated that this settlement is not an admission of wrongdoing and that many of the complaints have already been resolved, Mayor Brandon Johnson said in a statement that the agreement demonstrates the city's commitment to protecting workers and small businesses while maintaining a fair market. The terms of the settlement were not made public by the company, but they include provisions for refunds, payments to restaurants and drivers, and payment of legal fees to the city.
$18 mil tho not bad tho wonder how many ppl affected by these deceptive practices dont get compensated 
they shoulda done better than just addin credits 2 users tho idk
I think it's kinda weird that DoorDash is settling without really saying they did anything wrong. They're just giving out credits and money to people... 
It feels like a PR move more than a real apology for their business practices. But hey, if it means small businesses in Chicago get some cash back, I'm all for it! 
against door dash. these guys have been taking advantage of restaurants and customers alike for way too long. who needs a "chicago fee" anyway? sounds like more money in pockets for the city tho