Chick-fil-A has agreed to pay out $4.4 million to customers after facing accusations of covertly inflating food prices on their delivery app.
Less than a month ago, several individuals filed a federal lawsuit alleging that during the height of the COVID-19 pandemic, the fast food chain advertised “free” and “low-cost” delivery, only to “secretly” mark up the price of individual food items on these orders by 25% to 30% compared to regular menu prices.
“On delivery orders only, Chick-fil-A secretly marks up food prices for delivery orders by a hefty 25-30%,” the lawsuit claims, according to Insider. “In other words, the identical order of a 30-count chicken nuggets costs approximately $5-6 more when ordered for delivery than when ordered via the same mobile app for pickup, or when ordered in-store.”
According to the plaintiffs who filed the lawsuit, they sought legal relief on behalf of themselves and those nationwide who “ordered food delivery through the Chick-fil-A mobile app or website, and were assessed higher delivery charges than represented.”
“By falsely marketing a free or low-cost delivery charge, Chick-fil-A deceives consumers into making online food purchases they otherwise would not make,” the plaintiffs argue.
Eligible individuals will receive a payment of $29.95 either in the form of cash or a gift card.
Settlement administrators will contact eligible individuals via email to alert them that the refund is available to them.
Also as part of the settlement, Chick-Fil-A has agreed to add a disclosure to their app and website informing customers that prices may be higher for delivery orders compared to their regular menu prices.
Mark-ups for delivery orders placed through platforms such as Uber Eats and DoorDash are nothing new, but it was the alleged lack of transparency on Chick-fil-A’s part that spurred the plaintiffs to pursue legal action against the fast food chain.
Chick-fil-A’s decision to settle the lawsuit does not reflect an admission of guilt on their part.