SANTA ANA, Calif. (Legal Newsline) - Chipotle is disguising expensive service fees on delivery orders as taxes, a class action lawsuit alleges.
Plaintiffs Hudson Gill and Clair Awad filed a class action lawsuit July 31 against Chipotle Mexican Grill, Inc. in the United States District Court for the Central District of California.
The plaintiffs allege that Chipotle misleads customers by including a hidden "Service Fee" within the tax amount displayed during online food delivery orders.
According to the complaint, Chipotle's checkout page shows a subtotal, a $1.00 delivery fee, and a tax amount that actually includes both tax and service fees, which are not properly itemized unless customers click on a drop-down menu.
This practice is claimed to deceive consumers into believing they are paying higher taxes when they are actually paying significant service fees to Chipotle.
The lawsuit asserts multiple claims, including violations of California’s Unfair Competition Law and False Advertising Law, New York’s General Business Law, as well as claims for quasi-contract, fraud, and unjust enrichment.
The plaintiffs seek restitution, damages, and an order preventing Chipotle from continuing these practices.
L. Timothy Fisher and others at Bursor & Fisher represent the plaintiffs.