Chicago: Johnson Administration Reaches $18 Million Settlement With Doordash Over Deceptive Business Practices
illi News/10318939

CHICAGO – The City of Chicago today announced an $18 million settlement with DoorDash, resolving the City's lawsuit asserting claims that the company engaged in deceptive and unfair business practices at the expense of restaurants, consumers, and delivery drivers.

"This settlement demonstrates Chicago's commitment to standing up for workers and small businesses while maintaining a fair and honest marketplace," said Mayor Brandon Johnson. "Our hospitality industry is critical to our economy, and it works best when companies play by the rules, workers are treated fairly, and consumers see transparent pricing. We are proud to have delivered justice and relief to the Chicago workers, small businesses, and residents who've been affected by these practices."

The City's lawsuit arose out of an investigation into the practices of third-party meal delivery companies, which gained prominence during the COVID-19 pandemic. According to the City's complaint, DoorDash violated the Chicago Municipal Code by listing restaurants on its platform without their consent. The City also alleged that DoorDash did not initially present upfront the full cost of its service to consumers; imposed a misleadingly named "Chicago Fee" that was not a City-mandated charge; and did not disclose that menu prices on the platform were often higher than prices available directly from the restaurant. The City further alleged that DoorDash misled consumers to believe they were tipping drivers directly, when DoorDash actually used the tips to subsidize its own payment of drivers.

More on illi News

• Mayor Brandon Johnson Signs Executive Order Creating Enhanced Regulatory Review for Data Centers in Chicago and Calls for a Temporary Data Center Moratorium
• Michael Maertens Hired as Century Fasteners Corp. – Chief Financial Officer
• Built to Last: Why BSI Is Among the Nation's Fastest-Growing Companies, and One of Its Best Places to Work
• Tube N Grow Introduces an Integrated Approach to Vertical Home Gardening
• Chicago: Mayor Brandon Johnson Announces Appointment of Ashlee Gabrysch as Chief Financial Officer

"Chicagoans deserve transparency, honest service, and confidence that their tips support workers and local business," said Corporation Counsel Mary B. Richardson-Lowry.  "This settlement affirms those principles."

Under the settlement terms:

• DoorDash will pay $3.25 million to restaurants that had been listed on DoorDash's platform without consent and are not currently on the platform. Eligible restaurants will receive instructions from DoorDash on how to sign up for payment. DoorDash also agreed not to list Chicago restaurants without their consent in the future.  
• DoorDash will provide $5.8 million in delivery commission and marketing credits to eligible restaurants currently on the DoorDash platform. Eligible restaurants that DoorDash initially listed without consent, but have since joined the platform, will receive an additional share of these credits. Eligible restaurants will receive further information about this relief from DoorDash.  
• DoorDash will provide $4 million in credits, which can be applied to food delivery orders, to eligible Chicago users with active accounts on the platform. DoorDash will make these credits automatically available to eligible Chicago users beginning January 28, 2026.  
• DoorDash will pay $500,000 to drivers who were delivering food orders in Chicago as of September 2019, the last month that DoorDash's practice of using tips to subsidize driver pay was in effect. These payments will supplement amounts that eligible drivers already received through DoorDash's settlement with the Illinois Attorney General over the same practice. Eligible drivers will receive notification and payment from the claims administrator for that settlement, Atticus Administration, LLC.    
• DoorDash will pay $4.5 million to the City to cover the City's costs and fees in bringing the lawsuit.  

"The City of Chicago is committed to protecting consumers from unlawful business practices," said Ivan Capifali, Commissioner of the Chicago Department of Business Affairs and Consumer Protection. "This settlement reflects our ongoing efforts to ensure compliance by holding businesses accountable. When businesses operate responsibly, consumers gain trust, and the marketplace becomes stronger and more equitable for all."

More on illi News

• Bent Danholm's The Architecture of Demand Reaches No. 2 in Amazon Real Estate Sales
• The Kryder Law Group, LLC Announces $500,000 Recovered in Slip and Fall Settlements
• Contracting Resources Group Named to Inc. 5000 for the Ninth Time
• Spooky Ventures, Tales of Wonder and Dread and Frankenstein
• ImagineX Named to 2026 Inc. 5000 List of America's Fastest-Growing Private Companies

The City was represented in this lawsuit by attorneys from the Department of Law's Affirmative Litigation Division and by the law firm of Cohen Milstein Sellers & Toll PLLC.

---

Show All News | Disclaimer | Report Violation