Chipotle is a popular fast-food restaurant that specializes in fresh Mexican food like burritos. You can avail of in-store dining, pick up, and also delivery services. According to the company website, consumers have to pay just 1% in fees for ordering food for delivery. However, the company faced a class-action lawsuit for allegedly misleading its customers who have complained about hidden delivery charges. According to a $4 million lawsuit, Chipotle was levying hidden delivery fees by up charging food prices and in the form of service fees.
As per the 2021 class-action lawsuit, Chipotle charged its customers around 10% more for delivery compared to in-person purchases. They also hiked up the price of food items by 12-15% on deliveries. The plaintiffs have contended that this forced the delivery customers to pay hidden delivery charges which contradicted the company’s claim of non-existent or $1 delivery fees. The customers wouldn’t have ordered Chipotle for delivery if they were informed about these fees.
Chipotle has agreed to offer $4 million in payments and vouchers for resolving these allegations although it hasn’t admitted any wrongdoing. The fast-food restaurant has asserted that neither of the communications around its delivery orders was misleading and has expressly denied any wrongdoing or liability of any kind with the claims alleged in the Action. Chipotle has further contended that for any purpose apart from the Settlement, the Action cannot be considered appropriate for class treatment.
The Class Counsel will request an award of the attorney’s fees and cost which shall not exceed $645000. On receiving the approval of the court, USD 333000 will be paid to the Non-Rewards member settlement fund and Chipotle will bear the additional USD 312000 separately. The Class Counsel will also ask the court for an incentive award that will not exceed USD 5000 for each Class Representative for taking risks in the litigation and for settling individual claims. On receiving the approval from the court, the incentive award for Mr. Aseltine will be paid from the Non-Rewards Subclass Settlement Fund, whereas Chipotle will finance the incentive awards for Mr. Dundon.
Eligibility For Making Claim: Class members eligible to benefit from the Chipotle Hidden Delivery fees class action settlement include consumers who placed a Chipotle order for delivery either through the company’s application or website between 11th May 2020 and 19th January 2022.
This group comprises two subclasses:
- Class members who were a member of Chipotle’s rewards program
- Class members who were not.
Persons who have validly opted out of the settlement promptly shall be excluded from each subclass alongside counsel of record (and their respective law firms) for the Parties, governmental entities, defendant, and any of its affiliates, parents, independent service providers, subsidiaries and all of its respective officers, employees, and directors, any natural person or entity who entered into a release with the Defendant before the effective date concerning Chipotle’s pricing or advertisements while ordering food delivery through their app or website, and the judicial officer presiding over the matter or the presiding judge in the Action and all of their judicial staff and immediate families.
Proof of Purchase: Unique ID should be submitted as proof of purchase. Class members can obtain their unique ID by contacting the settlement administrator if they somehow lose or do not receive a settlement notice.
Potential Claim Amount: According to the settlement terms, a cash fund worth $1 million will be used for paying Class members who were not members of Chipotle’s reward fund. This fund will be used for paying the costs of the Notice Plan and the Claims process including objections and exclusions. Each non-rewards program subclass member will receive an equal share of the settlement fund under the variable payment scheme. Class members who were Chipotle’s rewards program members shall receive vouchers in the place of cash payments. $3 million will be paid out in vouchers wherein each rewards program Subclass member shall receive a voucher for one free entrée based on an average entrée value of $8.50. Both Non-rewards member settlement class members and Rewards member settlement class members shall be issued digital payment/vouchers as the case might be once the settlement is approved.
Settlement Website: DeliveryFeeSettlement.com
Objection Deadline: 05/25/2022
Exclusion Deadline: 05/25/2022
Claim Form: Dundon Aseltine v Chipotle – Login (deliveryfeesettlement.com)
Deadline For Submitting Claim: 06/28/2022
Final Hearing Date: 07/12/2022
Settlement Amount: $4 million