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Canada's antitrust watchdog files lawsuit against DoorDash for pricing practices and discounts

Introduction

The Canadian Competition Bureau is taking legal action against DoorDash and its Canadian subsidiary for allegedly misrepresenting prices and discounts to consumers.

Context

On June 9, the Competition Bureau reported that its investigation revealed that customers were unable to complete purchases at the prices advertised on DoorDash's websites and mobile applications. This issue arose due to mandatory fees being applied at checkout, which were not disclosed upfront.

Developments

The bureau's lawsuit aims to prevent DoorDash from continuing what it describes as deceptive advertising practices related to pricing and discounts. As part of the legal action, the bureau is seeking penalties against the companies and restitution for affected consumers.

In response, DoorDash has defended its practices, asserting that it does not conceal fees from customers and believes the bureau's response is excessive. The company claims it is being unfairly targeted as a leader in the local commerce sector.

Conclusion

As the legal proceedings unfold, the case highlights ongoing tensions between regulatory bodies and prominent service providers in Canada, raising questions about transparency in digital commerce.