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11/19, 5:59 PM (Source: TeleTrader)
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DC AG charges DoorDash over 'deceptive trade practices'

District of Columbia Attorney General Karl Racine (pictured) sued DoorDash Inc. on Tuesday over "deceptive trade practices that were in place from approximately July 2017 until at least September 2019," according to the lawsuit filed in DC's Superior Court.

Racine stated in the lawsuit that "DoorDash misled consumers" to believe that the tipping model the company used was, in fact, intended to provide tips for the company's delivery workers. He alleged that the tipping money was used to "subsidize DoorDash's agreed payment to the worker and almost never served to increase that payment amount."

The investigation into the DoorDash's tipping practices started in March.

Breaking the News / MS