November 24, 2025
‘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.
The City of Chicago announced that the food delivery service DoorDash has settled a lawsuit filed against it for $18 million.
Mayor Brandon Johnson stated that the company has agreed to provide restitution to delivery drivers, restaurants, and consumers following an investigation that found the company engaged in deceptive and unfair business practices.
The city of Chicago announced an $18 million settlement Friday in its lawsuit against DoorDash alleging the food delivery service engaged in deceptive business practices during the pandemic — at the expense of customers, restaurants and drivers.https://t.co/bcpTo1xkEe
— Chicago Tribune (@chicagotribune) November 15, 2025
“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 in a written statement. “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 investigation revealed that during COVID-19, DoorDash violated the Chicago Municipal Code by listing restaurants without their consent. They also alleged that the company did not initially inform customers of the full cost of its service; it imposed a misleading “Chicago Fee” that was not mandated by the city; and did not reveal that menu prices were listed at a higher price than what the restaurant charges. DoorDash also allegedly misled customers into believing the tips they were giving were going directly to drivers, when they were actually used to subsidize its own payments to drivers.
In its response to settling the lawsuit, DoorDash stated that the aforementioned business practices no longer exist.
“We’re pleased to have settled this years-old lawsuit with the City of Chicago. To be clear, this settlement isn’t an admission of wrongdoing and the allegations in this lawsuit focus on business practices that no longer exist.”
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