In May 2025, a proposed class action lawsuit was filed against Uber Technologies Inc. and its Canadian subsidiaries over allegations of deceptive fee practices related to the Uber Eats platform. Plaintiffs claim that a “Service Fee”—ranging from $2 to $4—is hidden during the ordering process, misleading consumers about the true cost of their purchases. The suit, led by Koskie Minsky LLP, aims to recover financial damages for Canadian users who were affected by these allegedly deceptive practices.
Summary Table: Canada Uber Eats Hidden Fees Lawsuit
Detail |
Information |
---|---|
Lawsuit Name |
Uber Eats Hidden Fees Class Action (Canada) |
Filed On |
May 16, 2025 |
Jurisdiction |
Ontario Superior Court of Justice |
Key Allegation |
Hidden “Service Fee” not disclosed upfront |
Plaintiff Law Firm |
Koskie Minsky LLP |
Eligibility |
Canadian users charged a Service Fee on or after May 16, 2023 |
Relief Sought |
Refunds, punitive damages, court-mandated UI changes |
Current Status |
Awaiting class certification |
Official Site |
What Is the Lawsuit About?
At the center of the complaint is the allegation that Uber Eats uses a form of “drip pricing,” where certain fees are not shown until the final checkout screen. The lawsuit contends that the Service Fee is not clearly disclosed in the same manner as the Delivery Fee, and is instead grouped under a vague label titled “Taxes & Other Fees.” This misleads users into believing the total cost is lower than it actually is.
Service Fee Misrepresentation
According to the plaintiffs:
- The Service Fee resembles a second delivery charge.
- It is shown only at the last stage of the transaction.
- It is grouped under an ambiguous section that suggests it might be a government fee.
This tactic, they argue, influences consumer behavior by making a food order seem cheaper than it really is until the final moment.
Uber One Subscription Issues
The lawsuit also highlights that Uber One subscribers, who pay a fee in exchange for benefits like waived delivery charges, are still required to pay the Service Fee. This practice may breach the contractual terms of the Uber One membership, which was marketed as providing free delivery on eligible orders.
Concerns Raised:
- Misrepresentation of benefits to Uber One users
- Financial losses from recurring Service Fees despite subscription
Legal Grounds for the Lawsuit
The lawsuit relies on several key laws:
Law |
Alleged Violation |
Competition Act (Canada) |
Misleading advertising, deceptive practices |
Consumer Protection Legislation (Provincial) |
Failure to disclose full pricing |
Contract Law |
Breach of Uber One subscription promises |
In addition to financial compensation, the plaintiffs seek punitive damages to hold Uber accountable for what they allege is deliberate deception.
Who Is Eligible?
To be considered part of the class:
- You must reside in Canada.
- You must have placed a delivery order through Uber Eats on or after May 16, 2023.
- Your order must include a Service Fee.
Note: Pickup orders and those placed outside the timeframe are excluded.
What Is Being Requested?
The lawsuit seeks a range of remedies:
- Reimbursement of the Service Fees charged under false pretenses
- Restitution of any profits gained by Uber from misleading practices
- Punitive damages to penalize the alleged misconduct
- Court-mandated UI changes to improve transparency
- Coverage of legal fees
Potential Impact if Successful
If the plaintiffs succeed:
- Uber may be required to revise its app to disclose all fees upfront.
- Millions of users could be refunded Service Fees.
- The case may set a precedent for other digital platforms to adopt clearer pricing models.
Timeline and Legal Procedure
Event |
Date |
Class Action Filed |
May 16, 2025 |
Awaiting Certification |
Mid to Late 2025 (estimated) |
Discovery/Trial Phase |
TBD post-certification |
Possible Settlement |
TBD |
What Should Consumers Do Now?
- Keep Receipts: Save all Uber Eats delivery order confirmations and email receipts.
- Check Service Fees: Review past orders to identify if the fee was charged.
- Monitor Updates: Follow the official class action site for certification news.
- Wait for Certification: You will be notified of next steps if the class is certified.
Frequently Asked Questions (FAQs)
Q1: Will I automatically get compensated if I used Uber Eats?
Ans. No. Compensation depends on the case being certified and successfully resolved. You must meet eligibility requirements.
Q2: What is class action certification?
Ans. Certification is a legal step that allows a lawsuit to proceed as a class action, representing a group of affected individuals.
Q3: Do I need to do anything now?
Ans. Keep your receipts and monitor the official legal portal. You may later need to file a claim or opt into the class.
Q4: What happens if the lawsuit settles?
Ans. If a settlement is reached, affected users will receive instructions on how to claim their share of the compensation.
Q5: What is the Service Fee exactly?
Ans. The Service Fee is a separate charge added at checkout. It is not a government fee, though it is often grouped with taxes.
For more details and future updates, visit the Koskie Minsky LLP Class Action Page.
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