Grubhub or FTC reports on refund distribution

Grubhub Pays $25M to Settle FTC, Illinois AG Charges of Deceptive Practices on Delivery Fees, Driver Earnings, and Restaurant Listings

Dec 17, 2024, 07:01 PM

Grubhub Inc. has agreed to pay a $25 million settlement to resolve charges brought by the Federal Trade Commission (FTC) and Illinois Attorney General Kwame Raoul for engaging in deceptive practices. The settlement addresses allegations that Grubhub misled customers about delivery fees, deceived delivery drivers regarding their potential earnings, and listed restaurants on its platform without their consent. FTC Chair Lina Khan stated that these practices harmed diners, workers, and small businesses. As part of the settlement, Grubhub is required to disclose the true cost of delivery, stop adding unaffiliated restaurants to its platform, and ensure transparency in driver earnings claims. The settlement includes a monetary judgment of $140 million, which is partially suspended due to Grubhub's inability to pay the full amount, with nearly all of the $25 million payment to be used to refund consumers harmed by the company's conduct, particularly through the addition of junk fees.