California Attorney General Rob Bonta announced a settlement with DoorDash on Wednesday, ending a years-long saga between the state’s Department of Justice and the food delivery platform.
The complaint alleged that the sale of personal information occurred in connection with DoorDash’s participation in a marketing cooperative, where businesses contribute personal information of their customers in exchange for the opportunity to advertise their products to each other’s customers. In a blog post on its website, DoorDash said it ended its relationship with all marketing cooperatives in 2020.
As part of the settlement, DoorDash will pay a $375,000 civil penalty and must comply with CCPA and CalOPPA. The agreement also requires the company review contracts with marketing and analytics vendors to evaluate if it is selling or sharing consumers’ personal information. DoorDash will also be required to provide annual reports to the AG’s office that monitors any potential sale or sharing of consumer personal information.
This settlement emphasizes the importance of compliance with privacy laws and the need for transparent handling of consumer data, especially in the context of marketing and advertising practices.
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