The DoorDash lawsuit refers to multiple legal actions and regulatory challenges faced by DoorDash, Inc., a leading food delivery platform, primarily focused on issues related to driver compensation, deceptive pricing, and consumer protection. In 2025, DoorDash settled a major lawsuit with the New York Attorney General for $16.75 million over allegations that the company misused customer tips to subsidize guaranteed pay for delivery drivers, misleading both workers and consumers. Additionally, DoorDash faces legal action in Canada for allegedly engaging in deceptive pricing practices known as “drip pricing,” along with ongoing class-action lawsuits and disputes over driver classification, subscription charges, and antitrust claims.
Background and Key Allegations
The New York Attorney General’s investigation found that between May 2017 and September 2019, DoorDash used a guaranteed pay model that misled delivery workers (“Dashers”) and customers. Instead of tipping Dashers on top of their guaranteed pay, DoorDash applied customer tips to offset the company’s payment obligations, effectively reducing drivers’ earnings. Customers were encouraged at checkout to tip with the assurance “Dashers will always receive 100 percent of the tip,” which was contradicted by DoorDash’s internal pay practices. The settlement returned $16.75 million to affected drivers and required DoorDash to enhance transparency in pay disclosures.
In Canada, the Competition Bureau filed a lawsuit against DoorDash and its Canadian subsidiary in June 2025, alleging that the company advertised misleading prices and discounts by imposing numerous mandatory fees only revealed at checkout. This “drip pricing” misled consumers about the true cost of orders, resulting in nearly $1 billion in additional fees collected over a decade. The Bureau seeks penalties, restitution, and an order to stop deceptive pricing.
Additional Legal Issues and Lawsuits
- Class-action lawsuits allege unauthorized charges for DashPass subscriptions through Apple Pay without user consent and difficulties in cancelling these subscriptions.
- Lawsuits contest DoorDash’s classification of drivers as independent contractors, affecting wage and benefits claims.
- Antitrust litigation from Uber accuses DoorDash of coercive practices related to exclusivity agreements with restaurants.
- Consumer lawsuits challenge hidden delivery fees and deceptive fee disclosures, especially during the COVID-19 pandemic.
Legal Outcomes and Settlements
The largest 2025 settlement involved DoorDash paying $16.75 million to New York delivery drivers for misused tips and agreeing to change its pay policies and improve transparency. Eligible drivers were encouraged to file claims by September 30, 2025. Other lawsuits remain active or pending in various jurisdictions, potentially leading to further financial penalties, regulatory actions, and industry reforms.
Broader Implications for Delivery Industry and Consumers
These legal challenges highlight ongoing tensions in the gig economy about fair compensation, transparency, and consumer trust. The lawsuits emphasize the need for clearer communication to customers and fair pay practices for delivery workers. They also reflect increasing scrutiny of app-based services regarding pricing ethics, labor rights, and platform accountability.
Frequently Asked Questions About the DoorDash Lawsuit
What was the New York lawsuit about?
It alleged DoorDash used customer tips to subsidize guaranteed pay for delivery drivers rather than paying drivers the full tips on top of their wages, misleading workers and consumers.
What was the settlement amount?
DoorDash agreed to pay $16.75 million to affected drivers and improve transparency in its pay practices.
What is drip pricing and how does it relate to DoorDash?
Drip pricing is advertising an initially low price but adding mandatory fees later at checkout. DoorDash’s Canadian subsidiary was sued for such deceptive pricing practices, collecting nearly $1 billion in hidden fees.
Are there lawsuits about DoorDash subscriptions?
Yes. Class action lawsuits allege unauthorized charges for DashPass subscription services and difficulties in cancellation, including unauthorized charges via Apple Pay.
What other legal challenges does DoorDash face?
DoorDash faces litigation related to driver classification, antitrust claims from competitors like Uber, and consumer protection suits regarding hidden fees and deceptive practices.
Conclusion
The DoorDash lawsuits reveal significant legal and regulatory challenges confronting app-based delivery platforms regarding worker compensation, pricing transparency, and consumer rights. The 2025 settlements and ongoing legal disputes signal increased oversight and demand for fair practices in the evolving gig economy landscape. For consumers and delivery workers alike, these cases underscore the importance of clarity, fairness, and accountability in digital service models as these companies expand their market dominance and influence.
