Panda Express has agreed to pay out $1.4 million amid claims it slapped customers with ‘hidden fees’ when they ordered online.

Consumers who placed an order with the fast-food chain on its app or website between July 17 2020 and February 16 2022 are being invited to apply for compensation. 

The American-Chinese firm was slapped with a class-action lawsuit that claimed ‘hundreds of thousands’ of customers paid hidden delivery fees that were not properly disclosed. Panda Express denied any wrongdoing but agreed to settle the suit. 

The allegations center around the claim the company would advertise low delivery prices – usually around $2.95 – but would then add on a 10 percent ‘service charge’ for online orders. 

Panda Express has agreed to pay out $1.4 million amid claims it slapped customers with 'hidden fees' when they ordered online

Panda Express has agreed to pay out $1.4 million amid claims it slapped customers with ‘hidden fees’ when they ordered online

Parent company Panda Restaurant Group Inc. was accused of cashing in on the boom in online deliveries during the pandemic. 

The California Superior Court for Los Angeles County has not yet fully approved the settlement, with a final hearing set for November 8.

Customers have until January 10 2024 to submit their claim. Only those who paid a service charge in the specified date range will be eligible for payment. However they do not need proof of purchase to compensate

They will be compensated via either a cash payment – up to a maximum of $10 – or up to two free medium entrée vouchers that can be redeemed on Panda Express’ website or app. 

The suit comes amidst a widespread backlash at hidden junk fees deployed by firms.

Earlier this year DailyMail.com exposed how good delivery apps were sneaking as much as 25 percent surcharges onto customer orders at the last minute. 

DailyMail.com made the same order, costing $49.70, from a Joe & The Juice store in New York City on apps DoorDash, Grubhub and Uber Eats

DailyMail.com made the same order, costing $49.70, from a Joe & The Juice store in New York City on apps DoorDash, Grubhub and Uber Eats 

To illustrate how much customers are being forced to fork out in fees for food delivery, reporters made the same order, costing $49.70, from a Joe & The Juice store in New York City on apps DoorDash, Grubhub and Uber Eats. 

Then we compared the costs associated with each – before and after a 20 percent driver tip.

Delivery app Seamless, which operates in over 600 cities in the US, is now owned by Grubhub, while DoorDash bought up competitor Caviar in 2020. Fewer choices mean customers may have little choice but to pay out extra add-ons on their deliveries. 

DailyMail.com reached out to Panda Express for comment. To submit a claim for the lawsuit, visit: https://deliveryservicefeesettlement.com/Home/SubmitClaim.

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