Grubhub to Pay $25 Million to Settle Deceptive Business Practices

📆 18/12/2024 8:00 AM
📰 AP

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Grubhub, a food delivery service, has agreed to pay $25 million to resolve allegations of deceptive business practices against consumers, drivers, and restaurants. The settlement was reached with the Illinois Attorney General and the Federal Trade Commission.

Grubhub Inc., an online food ordering and delivery platform, will pay $25 million to settle a dispute over alleged deceptive business practices with the Illinois attorney general and the Federal Trade Commission, officials said Tuesday. Attorney General Kwame Raoul said he launched an investigation into the 20-year-old operation after receiving “dozens” of consumer complaints and engaged the FTC on the nationwide settlement.

“Grubhub tricked its customers, deceived its drivers and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub — all in order to drive scale and accelerate growth,” FTC chairperson Lina M. Khan sai

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Grubhub to Pay $25 Million Over Alleged Unlawful Business PracticesThe Federal Trade Commission (FTC) and Illinois Attorney General Kwame Raoul filed a lawsuit against Grubhub for deceptive practices affecting customers, drivers, and restaurants. Grubhub allegedly misrepresented delivery costs, restricted customer accounts, and misled workers about earnings. The company also listed restaurants without their consent, harming their reputations and revenue.
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