DoorDash admitted to charging a New York City restaurant nearly $14,000 in bogus delivery fees, but in a settlement it only offered to repay the burger joint half of the amount, according to the complaint.
Harlem Shake, a 12-year-old eatery at 100 W. 124th Street whose customers include NBA legend Shaquille O’Neal and rapper Jim Jones, was arrested in 2019, according to a complaint filed this month. He said he has paid $13,932 in bogus fees since November. Federal Court for the Northern District of California.
When the restaurant confronted DoorDash with evidence it first discovered in June, the San Francisco-based company admitted it had “unjustly” received $13,932 in fees, but the restaurant said it had “unjustly” taken $13,932 in fees, according to the complaint. He only offered to repay $7,259.
DoorDash similarly “insisted on Harlem Shake to discharge and settle all claims related to DoorDash’s ‘miscalculated fees,'” the lawsuit alleges.
The lawsuit alleges that the tech company’s overcharging practices are “pervasive and pervasive,” impacting “thousands” of restaurants, and that New York City’s decision to cap delivery app fees at 20% of the monthly amount in 2020 The lawsuit alleges violations of New York state law and is seeking class action status. Order takeout.
“DoorDash has not previously provided a full explanation, but it has acknowledged that it charged fees that exceeded the fee cap,” the complaint alleges.
The lawsuit does not provide details about the allegedly fraudulent fees.
A Harlem Shake spokesperson said in an email that the company declined to comment “at this early stage of the legal process.”
“If there is an inadvertent mistake, we will work with the merchant to correct the issue and refund any outstanding amounts,” a DoorDash spokesperson said in a statement. We stand by New York City’s commitment to restaurants and look forward to resolving this issue quickly. ”
Lawyers for Harlem Shake, a group of attorneys based in California, Tennessee and Mississippi, did not respond to calls or emails seeking comment.
DoorDash isn’t the only distribution app accused of bad business practices.
Los Angeles County District Attorney sued On February 21, Grubhub alleged that “many aspects of Grubhub’s business and all of its food delivery transactions are deceptive,” according to the complaint.
The filings say the allegations include false advertising, bait-and-switch delivery pricing, and misrepresentations about driver benefits and tips.
In a statement to the Post Grubhub, Grubhub said: “We are working diligently to support Los Angeles restaurants, diners, and drivers and are continually reviewing and enhancing our operations to better serve them and meet their expectations. , we have sought to engage in constructive dialogue with the Los Angeles County Attorney’s Office to explain our business and identify areas for improvement. Our activities always comply with applicable law, and in no event will we However, we are disappointed that they moved forward with this lawsuit, as many of the allegations are false or have been discontinued. We look forward to continuing to serve our customers, diners, and drivers.”
New York City’s delivery fee cap was imposed at the start of the pandemic to help restaurants hit by coronavirus restrictions and previously paying fees as high as 30%.
The City Council passed a bill capping food delivery fees at 15% of the order, plus an additional 5% for marketing fees and credit card processing fees.
Other cities and states have adopted similar rules, which are largely still in place.
Uber Eats, Grubhub and other delivery apps sued New York City to overturn the cap, saying it would hurt restaurants by depriving them of the same level of service and exposure and causing customers to order fewer orders.
That lawsuit is ongoing.
Massachusetts sued Grubhub in 2021, accusing the delivery app company of violating the state’s 15% commission law.
Chicago sued Grubhub and DoorDash, alleging deceptive consumer fees.
“We understand that food delivery platforms are violating COVID-19 regulations and caps quite often,” said a legal expert who requested anonymity.
“The multibillion-dollar delivery company has a long history of exploiting restaurants, which is why it was regulated here in New York City,” said Andrew Riggy, executive director of the New York City Hospitality Alliance. told the paper.
“They have been caught numerous times for charging fake fees for orders that were never placed and for listing restaurants without permission,” Riggy added.
