DC Attorney General sues DoorDash, claiming it misled customers and pocketed workers' tips

CNBC Technology 3 weeks ago

D.C. Attorney General Karl Racine brought charges against DoorDash Tuesday, accusing the company of pocketing tips meant for workers and misleading customers about where their money was going.

Racine is seeking to recover millions of dollars in tip money customers paid through DoorDash over two years under its previous model, which the attorney general's office called "deceptive."

The charges follow an investigation Racine's office launched in March which found DoorDash used customers' tips to offset the company's payments to workers. A report from Recode at the time explained that DoorDash offers its delivery workers a guaranteed amount they will be paid for an order before accepting, but later subsidizes that amount with tips customers pay through the app. Rather than serve as a bonus for workers, the report said, customer tips went to DoorDash to offset workers' base pay.

DoorDash said over the summer it was changing its tipping model after public backlash so that "Every dollar customers tip will be an extra dollar in their Dasher's pocket, and customers will be able to tip at checkout or after the delivery."

A spokesperson for Racine's office said it is the first attorney general's office to take action against DoorDash.

DoorDash is not the only gig economy company that has faced backlash for its tipping policies. An NBC News report in February said Instacart used a similar practice to subsidize worker pay with tips up to the guaranteed $10 per-job minimum. The company changed its policy following a petition from workers.


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Business Insider › Automobile › 3 weeks ago
DC Attorney General Karl Racine is suing food delivery company DoorDash, CNBC first reported. In the suit, Racine alleges that DoorDash engaged in misleading practices and kept tips intended for drivers. He alleges that during the two years the tipping...
ABC News › 3 weeks ago
The attorney general of Washington D.C. is suing DoorDash, saying the food delivery service pocketed tips that customers thought were going to delivery workers
Chicago Tribune › Finance › 3 weeks ago
D.C. Attorney General Karl Racine said Tuesday that DoorDash misled consumers who believed their tips would go to workers, not the company’s bottom line.
New York Post › Finance › 3 weeks ago
Washington DC’s attorney general sued DoorDash this week over tipping practices he ripped as “deceptive.” “DoorDash misled consumers, who reasonably believed that their tips would go to workers, not the company’s bottom line,” Democratic...
UPI › 3 weeks ago
Washington D.C., Attorney General Karl Racine filed a lawsuit against delivery service DoorDash on Tuesday alleging the company misled customers about where their tips were going.
Breitbart › Technology › 3 weeks ago
The attorney general of Washington, D.C. has just delivered a lawsuit to DoorDash, alleging that the popular food-delivery company skimmed tips from its drivers and misled customers into thinking that their gratuities would end up in drivers' pockets.
CNN › Technology › 3 weeks ago
DoorDash is being sued by DC Attorney General Karl Racine over allegedly deceiving customers with a controversial tipping policy.
Washington Examiner › 3 weeks ago
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.
The Wall Street Journal › Finance › 3 weeks ago
A lawsuit alleges the company pocketed tips on deliveries.
Washington Post › Lifestyle › 3 weeks ago
The attorney general’s office wants to recoup the tips and return them to workers.
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