Because of Covid-19, many Americans have not wanted to leave their homes if it’s not necessary. The complaint for this class action alleges that Panera Bread Company “has moved aggressively into the food delivery business” to answer this desire, including with a promise to provide delivery for a flat fee, normally $4. However, the complaint alleges that this is a false promise, claiming that Panera actually requires delivery customers to pay additional hidden costs.
The class for this action is all consumers in California who, within the applicable statute of limitations before the filing of this class action up to the date of class certification, ordered food for delivery via the Panera mobile app or website, and were assessed higher delivery charges than promised.
How does Panera impose these hidden costs on customers? The complaint claims that food prices for delivery orders are increased by 5-7%. In other words, a sandwich ordered for delivery costs around $1 more than the same sandwich ordered by a person on the Panera premises.
The complaint alleges, “This hidden delivery upcharge makes Panera’s flat, low-cost delivery promises patently false. The true delivery costs are obscured, as described above, and far exceed the prominent flat, low-cost promises.”
Panera gets away with this, the complaint claims, by putting out in-app and online marketing materials that do not tell prospective customers that they are paying more for the actual food items ordered through the delivery service.
The complaint claims that this gives them an unfair advantage over competitors. It cites Del Taco and El Pollo Loco, two other restaurants that offer delivery services through their apps and websites. The complaint says that both these restaurants “fairly and prominently represent their true delivery charges.”
In addition, the complaint mentions the American Marketing Association which says it “commits itself to promoting the highest standard of professional ethical norms and values…” It has put out a Statement of Ethics with ethical norms for businesses. As to Panera, the complaint alleges, “By failing to disclose to consumers that the cost of delivery is more than $4 and/or by failing to disclose that Panera marks up its food prices based on if a food item is ordered in person or for pick up vers[u]s via their delivery service, and/or by misrepresenting the true cost to have Panera food delivered, [Panera] violated these Ethical Norms…”
The counts include violations of state laws, including California’s Unfair Competition Law, its Consumer Legal Remedies Act, and Missouri’s Merchandising Practices Act
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Panera Bread False Flat Delivery Fee Complaint
March 11, 2021
Because of Covid-19, many Americans have not wanted to leave their homes if it’s not necessary. The complaint for this class action alleges that Panera Bread Company “has moved aggressively into the food delivery business” to answer this desire, including with a promise to provide delivery for a flat fee, normally $4. However, the complaint alleges that this is a false promise, claiming that Panera actually requires delivery customers to pay additional hidden costs.
Panera Bread False Flat Delivery Fee ComplaintCase Event History
Panera Bread False Flat Delivery Fee Complaint
March 11, 2021
Because of Covid-19, many Americans have not wanted to leave their homes if it’s not necessary. The complaint for this class action alleges that Panera Bread Company “has moved aggressively into the food delivery business” to answer this desire, including with a promise to provide delivery for a flat fee, normally $4. However, the complaint alleges that this is a false promise, claiming that Panera actually requires delivery customers to pay additional hidden costs.
Panera Bread False Flat Delivery Fee Complaint