12:33 PM EDT, 06/09/2025 (MT Newswires) -- DoorDash ( DASH ) is facing a lawsuit from Canada's Competition Bureau for allegedly misrepresenting prices to customers, according to a statement from the regulator Monday.

According to the regulator, the company promoted its online delivery services by displaying lower prices than what consumers actually had to pay. At check out, customers were charged mandatory fees, some of which were discretionary, resulting in higher prices or lower discounts than advertised.

The practice, commonly referred to as "drip pricing," is deemed to be "deceptive because consumers are not presented with an attainable price upfront," the regulator said.

The Competition Bureau alleged the practice had been going on for close to a decade, and said it was taking legal action to "stop the deceptive price" and have the company pay a penalty, among other things. The regulator is also seeking restitution to affected consumers who purchased items through DoorDash's ( DASH ) platform, it said.

DoorDash ( DASH ) denied the allegations in an email to MT Newswires. "This application is a misguided and excessive attempt to target one of Canada's leading local commerce platforms. It unfairly singles out DoorDash ( DASH ), and we intend to vigorously defend ourselves against these claims," a DoorDash ( DASH ) spokesperson said via email.

The spokesperson also said the company does not hide fees from consumers or "mislead them in any way."

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