law and order
18-12-2024
Grubhub will pay $25 million to settle allegations brought by the Federal Trade Commission (FTC) and the Illinois Attorney General.
Credit: Spencer Platt / Staff via Getty Images
The accusations include misleading customers with junk fees and adding restaurants to its platform without their consent.
Credit: Unsplash
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.
Credit: Unsplash
Grubhub allegedly advertised low fees but added hidden charges, raising order costs.
Credit: Unsplash
It also misled Grubhub+ members by promising free delivery but still charging for it. Canceling subscriptions was reportedly difficult.
Credit: Unsplash
The FTC said Grubhub’s actions harmed both diners and restaurants. Restaurants reported damaged reputations, lost revenue, and operational chaos.
Credit: Unsplash