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Chick-fil-A agrees to $4.4M class action settlement over delivery fees; how you can get your share

Chick-fil-A

Delivery can be more expensive than running to your favorite restaurant to pick up a meal, but Chick-fil-A was the subject of a class action suit that said that its delivery was free or low-cost but raised the prices of the items being ordered.

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The restaurant chain has settled the suit for $4.4 million, with some customers able to get their cut of the money.

The complaint said, “On delivery orders only, Chick-fil-A secretly markets up food prices for delivery orders by a hefty 25-30%. 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.”

The complaint calls the pricing and promise of free or low-cost delivery deceptive because of the food markups.

Originally, according to the filing, Chick-fil-A had charged $4.99 for delivery but kept prices of the food the same as it is when either picked up or ordered in person. But during the COVID-19 pandemic, the company lowered the delivery fee, but increased prices.

KTLA and AL.com reported that Chick-fil-A had settled the class action weeks after it was filed. Citing Top Class Actions, the news outlets said that the restaurant chain did not admit to guilt.

AL.com reported that the settlement will be comprised of $1.45 million in cash and $2.95 million in gift cards. Chick-fil-A also has to put a disclosure on its sites that says that prices may be higher for delivery.

Customers who may get a refund will be emailed from the settlement administrator. Each should get a $29.95 payment or gift card, but the amount may be lower, depending on how many people are included in the settlement.

The company’s website will also have a notice where people can register for their portion of the settlement.

Chick-fil-A isn’t the only company accused of having higher prices for food that’s delivered. Insider looked at Chipotle and McDonald’s, and when food’s ordered through delivery apps like DoorDash and Uber Eats, the cost of the food was 20% to 38% higher than in the restaurants. The chains, according to Insider, set the prices, not the apps.

“Marked-up menu prices are one of the top customer complaints DoorDash receives,” DoorDash told the media outlet. “This is one reason – among many – why DoorDash encourages restaurant partners to maintain delivery menu prices that more closely reflect in-store menu prices.”