Chicago to Receive Millions in DoorDash Settlement Over Deceptive Practices
A long-standing lawsuit against food delivery giant DoorDash has finally come to a close, with the company agreeing to pay $18 million to settle allegations of deceptive business practices during the COVID-19 pandemic. The city's complaint centered on several key issues, including DoorDash's listing of restaurants without their consent and failure to disclose full service costs to customers.
According to the city, DoorDash had been using a "Chicago Fee" that was not a city-mandated charge, misleading consumers into believing they were paying extra fees. The company also allegedly misled drivers by claiming that customer tips went directly to them when, in fact, the tips were used to subsidize driver pay.
The settlement includes payments to affected Chicago residents, who will receive $4 million in credits towards food delivery orders starting January 28, 2026. Additionally, DoorDash has agreed to pay $3.25 million to restaurants listed on its platform without consent and $5.8 million in delivery commission and marketing credits to those already listed.
The company also must pay $500,000 to drivers who were delivering food orders as of September 2019, a practice that was eventually phased out in favor of paying drivers a guaranteed wage. Furthermore, DoorDash will provide an additional share of these credits to restaurants that were initially listed without consent but have since joined the platform.
The settlement also includes a $4.5 million payment to cover the city's legal fees, bringing the total payout to $18 million. While a DoorDash spokesperson said the company was "glad to put this behind us," some critics argue that the fine is not enough to account for the harm caused by the company's practices.
As part of the settlement, Chicago Mayor Brandon Johnson hailed the agreement as a victory for workers and small businesses, emphasizing the importance of fair and honest marketplaces.
A long-standing lawsuit against food delivery giant DoorDash has finally come to a close, with the company agreeing to pay $18 million to settle allegations of deceptive business practices during the COVID-19 pandemic. The city's complaint centered on several key issues, including DoorDash's listing of restaurants without their consent and failure to disclose full service costs to customers.
According to the city, DoorDash had been using a "Chicago Fee" that was not a city-mandated charge, misleading consumers into believing they were paying extra fees. The company also allegedly misled drivers by claiming that customer tips went directly to them when, in fact, the tips were used to subsidize driver pay.
The settlement includes payments to affected Chicago residents, who will receive $4 million in credits towards food delivery orders starting January 28, 2026. Additionally, DoorDash has agreed to pay $3.25 million to restaurants listed on its platform without consent and $5.8 million in delivery commission and marketing credits to those already listed.
The company also must pay $500,000 to drivers who were delivering food orders as of September 2019, a practice that was eventually phased out in favor of paying drivers a guaranteed wage. Furthermore, DoorDash will provide an additional share of these credits to restaurants that were initially listed without consent but have since joined the platform.
The settlement also includes a $4.5 million payment to cover the city's legal fees, bringing the total payout to $18 million. While a DoorDash spokesperson said the company was "glad to put this behind us," some critics argue that the fine is not enough to account for the harm caused by the company's practices.
As part of the settlement, Chicago Mayor Brandon Johnson hailed the agreement as a victory for workers and small businesses, emphasizing the importance of fair and honest marketplaces.