A new class action lawsuit in Canada accuses Uber Eats of 'misleading & deceptive' fees

A new class action lawsuit in Canada is accusing Uber Eats of misleading users with "deceptive" fees — and if you've ordered delivery through the app in the last few years, you could be part of the proposed class.

Filed in Ontario on May 16, the lawsuit targets Uber Technologies, Inc. and its Canadian subsidiaries. It claims that the company adds a hidden "Service Fee" on Uber Eats delivery orders that isn't properly disclosed until the very last step of checkout.

The class action suit says this practice — known as "drip pricing" — gives customers a false impression of how much their food will actually cost, by lumping the Service Fee under a vague "Taxes & Other Fees" section.

Class counsel behind the lawsuit, Koskie Minsky LLP, alleges that this fee was essentially just a second delivery charge — one that users aren't clearly told about.

"The Service Fee is a mandatory fee charged by Uber Eats, which applies to all delivery orders," the claim states. It says the fee ranges from $2 to $4, depending on order size. But unlike the Delivery Fee, which is shown upfront, the Service Fee isn't shown to the customer until the checkout page.

The lawsuit alleges this is intentional, stating that Uber Eats "actively chose to design their website and application in a way that delayed disclosure of the Service Fee, and actively chose to hide the Service Fee under 'Taxes & Other Fees' to further create the impression that such a fee was a government levy."

It also highlights further issues for Uber One members — the subscription tier marketed as including "no delivery fees" on eligible orders. According to the claim, the Service Fee still applies to Uber One users, even if they met the minimum order requirement for free delivery. This, the suit argues, amounts to a breach of contract.

According to the Statement of Claim, Uber's pricing practices violate several laws, including the Competition Act and provincial consumer protection statutes. The class action is seeking damages, restitution of Service Fees and punitive damages to "condemn and deter this high-handed conduct."

The proposed class includes "every person resident in Canada, who on or after May 16, 2023, placed an order for delivery using Uber Eats and paid a Service Fee."

While the suit has been filed, it's still in the early stages. That means the allegations haven't been proven in court, and no compensation or settlement has been approved — or guaranteed — at this point.

If the court certifies the lawsuit as a class action, members will be given the chance to opt out if they prefer to pursue individual legal action.

For now, if you've used Uber Eats for delivery in Canada over the past year and noticed an extra fee sneaking in at checkout, you're not alone — and you may be eligible to benefit from this legal action if it succeeds.

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