Montreal restaurant files class action suit against abusive delivery fees

Montreal restaurant files class action suit

Montreal restaurant files class action suit in court against crazy delivery fees. Deli Boyz, a popular restaurant located in Cote Saint Luc’s Cavendish Mall, has launched a class action suit in Quebec’s Superior Court against several food delivery service companies, including UberEats, Skip and Door Dash, for the fees they are charging them during the pandemic and considered ‘abusive’. According to Deli Boyz, during a period between December 27th 2020 and January 4th, they were charged and paid Uber Eats $737 in commissions for 67 orders that totaled approximately $2,550. The suit alleges that should the cap have been at 15%, they would only have paid a total of $368 and states that ‘consequently, an excessive disproportion exists when the defendants charge restaurants commissions in excess of 15%’.

Deli Boyz – Montreal restaurant files class action suit

How much do food delivery services charge restaurants?

“Our client’s view is if he would have had the exact same restaurant in Toronto or Vancouver and had the exact same orders, for last week’s period for example, he would have been charged $350 for the exact same delivery services, but instead, he was charged double… $700 by Uber Eats,” said Montreal lawyer Joey Zukran in a Global news report.

The suit is seeking damages ‘in the form of money paid to these companies in commissions above 15% since January 8th and it also requests that ‘a judge bar the defendants from charging commissions above 15% of the total customer order’ and it would apply to all restaurants in Quebec that were charged commission fees exceeding 15% from the ‘aforementioned delivery services… but seeks to recoup damages dating back to exactly two years prior’ – a claim Deli Boyz made that could amount to ‘tens of thousands of dollars in damages’ for just their restaurant.

The application for the class-action also states that ‘UberEats are corporate giants with a total market cap of more than $165 billion, that have taken over the food delivery business to such an extent that Deli Boyz is wholly dependent on UberEats in order to have a viable takeout business’.

Just last Monday, Premier Francois Legault said in a news conference with reporters that he ‘was open to looking at the issue of commissions’. However, he did not go so far as to confirm that he would impose a cap on fees. Montreal Mayor Valerie Plante had also called on the Quebec government to ‘temporarily cap delivery commissions to ensure profitability for restaurant owners’. The class action suit first requires judicial authorization in Quebec Superior Court, but is expected to go ahead.

By: Bonnie Wurst – info@mtltimes.ca

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