DoorDash Illegally Charges State Tax on Food Orders, Class Says

April 5, 2019, 4:55 PM

DoorDash Inc. illegally collects and pockets sales tax on food orders delivered in tax-free states, a class action filed April 5 alleges.

The food delivery company’s practice of charging customers located in states that don’t allow collection of sales tax—including Delaware, New Hampshire, and Montana—"is plainly unlawful, unfair, and deceptive,” the suit says.

The tax is a “disguised fee to DoorDash, which DoorDash retains as revenue,” allowing it to reap millions from customers, the suit says.

DoorDash is the second largest on-demand food delivery company after GrubHub, according to the complaint.

Causes of Action: Delaware Consumer Protection Act; Delaware...

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