law and order

Grubhub to Pay $25 Million Settlement for Misleading Customers

18-12-2024

Grubhub will pay $25 million to settle allegations brought by the Federal Trade Commission (FTC) and the Illinois Attorney General.

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The accusations include misleading customers with junk fees and adding restaurants to its platform without their consent.

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The FTC and Illinois Attorney General accused Grubhub of: – Misleading customers about delivery costs. – Adding unaffiliated restaurants to its platform without permission. – Deceiving delivery drivers about potential earnings.

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Grubhub allegedly advertised low fees but added hidden charges, raising order costs.

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It also misled Grubhub+ members by promising free delivery but still charging for it. Canceling subscriptions was reportedly difficult.

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The FTC said Grubhub’s actions harmed both diners and restaurants. Restaurants reported damaged reputations, lost revenue, and operational chaos.

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