The City of Chicago announced an $18 million settlement with DoorDash, resolving its lawsuit that accused the company of using deceptive and unfair business practices affecting restaurants, consumers, and delivery drivers.
Actions That Led to Regulators Examining Business Practices
This case dates back a few years, when delivery platforms grew rapidly and city regulators began to closely examine how these companies operated. The findings, the settlement amounts, and DoorDash’s official response all point to an industry that is still maturing, still evolving, and still working to balance the needs of restaurants, gig workers, and customers.
The lawsuit focused on multiple issues dealing with restaurants, customers, and delivery drivers. The City alleged that DoorDash listed restaurants on its platform without consent, which presented problems for small businesses that never agreed to be promoted or included.
Chicago also alleged that DoorDash did not initially disclose the full cost of orders to consumers, used a misleadingly named “Chicago Fee” that sounded government mandated when it was not, and allowed menu prices on the platform that were higher than restaurant direct prices without clear notice.
The complaint further stated that customers believed their tips were going entirely to delivery drivers, when for a period of time those tips were used to subsidize DoorDash’s own driver payments.
Chicago officials emphasized that transparency, clear communication, and honest business practices are non negotiable, especially in a city with a major hospitality and restaurant scene. The City stated that customers deserve accurate pricing, restaurants deserve control over how they are listed, and drivers deserve confidence that their tips support their work. City leaders viewed this lawsuit as protecting workers, small businesses, and the public.
Breakdown of the $18 Million Settlement
- $3.25 million to restaurants
For restaurants that DoorDash listed without consent and are no longer on the platform. - $5.8 million in commission and marketing credits
For restaurants currently on DoorDash.
Extra credits go to restaurants DoorDash initially listed without consent but later joined. - $4 million in delivery credits
For eligible Chicago consumers with active accounts.
Credits automatically appear starting January 28, 2026. - $500,000 to drivers
For Dashers who were delivering in Chicago as of September 2019,
when DoorDash used tip money to subsidize base pay.
These are supplement payments to the already completed Illinois Attorney General settlement. - $4.5 million to the City of Chicago
For fees and costs of bringing the lawsuit.
DoorDash issued an official response acknowledging the settlement and stating that it is pleased to resolve a years old lawsuit. The company emphasized that the settlement is not an admission of wrongdoing and that the allegations focused on business practices that no longer exist.
DoorDash noted that it has worked over the years to improve its platform and deliver a better experience for merchants, consumers, and Dashers. It also stated that it is glad to put the matter behind them and remains committed to supporting Chicago’s local economy.
Transparency and Accountability For Restaurants and Drivers
For delivery drivers and restaurants, this settlement reinforces that Chicago is serious about transparency and accountability.
For drivers, the case highlights why tip clarity matters and why delivery companies must ensure that earnings reflect what customers intend to give.
For restaurants, the settlement confirms that consent and control are essential when working with third party platforms. Listing restaurants without permission, even if well intentioned, can damage trust and complicate customer relationships.
This settlement also signals the direction regulators are moving. Cities expect clear disclosures, accurate pricing, and honest communication. Delivery platforms have grown quickly, but as they become embedded in daily life, oversight increases.
Companies will need to ensure that the interests of restaurants, drivers, and customers are protected on the backend, especially when it comes to tip transparency, fee labeling, and platform listing policies.
Moving Forward and Making Progress
The settlement offers closure for DoorDash the City of Chicago, support for affected restaurants and drivers, and a blueprint for what regulators will expect moving forward.
As delivery apps continue evolving, clarity and fairness will remain at the center of discussions about the future of gig work, food delivery, and the partnerships that keep the ecosystem running.
Published by DeliverySoCal.com
Sources, City of Chicago Official Press Release and DoorDash Official Statement.
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