A federal judge has advanced a class action claiming DoorDash used its platform to deceptively divert customers from non-partnering restaurants to those that pay DoorDash a cut for each food pickup or delivery order.
SAN FRANCISCO (CN) Already struggling to survive the crippling effects of a raging pandemic, a mom-and-pop restaurant was stunned to learn last summer the food delivery app DoorDash had falsely labeled it as “closed” or “unavailable” on its platform.
On Monday, the restaurant received more welcome news when a federal judge advanced its false advertising class action against the San Francisco-based technology company.
In a lawsuit filed this past September, St. Louis-based Asian fusion restaurant Lona’s Lil Eats claimed DoorDash deceptively directed customers away from restaurants that refuse to pay up to a 30% commission for each DoorDash delivery.