DoorDash Sued by DC Attorney General

DoorDash Sued by DC Attorney General

5 years ago
Anonymous $xdcOWPpsb_

https://wccftech.com/doordash-sued-by-dc-attorney-general/

DoorDash, in another blow to the gig economy, is facing scrutiny from the District of Columbia Attorney General Karl Racine over accusations that the company was offsetting their gig workers’ pay based on the tips given by the customers.  In a civil suit dated today, the AG alleges that the company was engaged in deceptive trade practices from July 2017 until September 2019 by misleading customers regarding the tip the customers left for workers delivering their food.  Instead of the tips going to the workers directly, it is alleged that the company was instead using the tips to subsidize DoorDash’s agreed upon payment to the worker instead of increasing the amount of compensation the workers received. 

According to the court filings, the AG claims: “Any reasonable consumer would have expected that the ''tip" they added to the delivery charge through the DoorDash checkout screenflow would be provided to the Dasher on top of the payment promised by DoorDash for the delivery. But during the relevant time period, that was not the case. Instead, DoorDash used consumer tips to subsidize the Guaranteed Amount of payment it promised to Dashers.”   This is part of a long set of bad news for the company which previously had to contend with this year as it has seen drivers accused of eating customers food, and previous reports regarding the tipping policy that was brought to light earlier this year.