The attorney general for Washington, D.C., filed a lawsuit against the food delivery company DoorDash, alleging that it is wrongfully taking tips customers intend for delivery drivers.
“DoorDash misled consumers, who reasonably believed that their tips would go to workers, not the company’s bottom line,” Attorney General Karl Racine said in a Tuesday statement. “We are filing suit to put a stop to this deceptive practice and secure monetary relief for those harmed by DoorDash’s actions.”
After backlash earlier this year, DoorDash announced in July that tips from customers would increase the amount drivers made. “We did not launch our current model to pay Dashers less. In fact, when we moved to it, our average contribution to Dashers stayed the same,” CEO Tony Xu wrote on Twitter. “Going forward, we’re changing our model – the new model will ensure that Dashers’ earnings will increase by the exact amount a customer tips on every order. We’ll have specific details in the coming days.”
[Read more: Study: Over half of delivery drivers are tempted to eat your food]
4/ Going forward, we’re changing our model – the new model will ensure that Dashers’ earnings will increase by the exact amount a customer tips on every order. We’ll have specific details in the coming days.
— Tony Xu (@t_xu) July 24, 2019
The new lawsuit will look to get the company to pay back millions of dollars in tip money, in addition to civil penalties. The attorney general’s office said Washington, D.C., has tens of thousands of DoorDash customers and contractors who were affected by the policy.
DoorDash responded to the lawsuit, saying, “We strongly disagree with and are disappointed by the action taken today. Transparency is of paramount importance, which is why we publicly disclosed how our previous pay model worked in communications specifically created for Dashers, consumers, and the general public starting in 2017.”
“We believe the assertions made in the complaint are without merit and we look forward to responding to them through the legal process,” it added.
