Wednesday, December 18, 2024 12:56AMCHICAGO --The announcement was made with Federal Trade Commission Chair Lina Khan and FTC Midwest Region Director Jason Adler.
The settlement was reached after a multi-year investigation into what the agencies called "deceptive and illegal business practices." "In the last five years, my office has received nearly 50 consumer complaints regarding Grubhub. So, I directed our consumer fraud bureau to open an investigation," Raoul said."Our joint investigation found that, for years, GrubHub deliberately and systematically cheated its customers, deceived its drivers and undermined restaurants that did not partner with GrubHub," Khan said.
"They've been saying you can make 'X' amount of money per hour, and it turns out you're out there working for hours, and you're not making what they guaranteed, even if you do schedule blocks of time," Casas said. What's more, the regulators say GrubHub listed certain restaurants on its platform without their permission, and, in some cases, despite their objections."Unaware of GrubHub's deception, unhappy customers blamed the restaurants, leading to reputational harm and lost revenues," Khan said.