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Washington, DC suits DoorDash for allegedly misleading users for tips



The company appeared to be using a "misleading payment model" designed to lower its labor costs, DC said, and effectively subsidized its operations without customer knowledge. While DoorDash has since changed its practice, the Attorney General's Office said DoorDash had not offered any compensation to either customers or delivery workers in the months since.

The suit officially accuses DoorDash of violating DC's consumer protection laws and seeks both compensation and damages.

Not surprisingly, DoorDash will contest the trial. In a statement to Engadget, it said it was "disappointed" over the lawsuit, claiming it publicly disclosed its salary model in 201

7. It also stated independently that it "paid 100% tip to Dashers," even though the lawsuit specifically dismantles this claim – the problem is not that tips were not offered, it is that they were used as substitutes for salaries rather than supplements. You can read the full statement below.

Regardless of the outcome, it is a significant moment. DC's attorney general believes this is the first time a US law firm has taken action against DoorDash. The lawsuit may be an example for other lawyers who have been considering taking similar measures. It can also serve as a warning to other gaming companies that have used (or are using) similar methods to lower costs.

"We strongly agree and are disappointed with the measures being taken today. Transparency is paramount, which is why we publicly revealed how our previous salary model worked in communications created specifically for Dashers, consumers and the public from 2017. We have also worked with an independent third party to verify that we have always paid 100% of tips to Dashers. We believe the claims in the complaint are without merit and we look forward to responding to them through the legal process. "[19659006]
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