Grubhub to Pay $25 Million to Settle Deceptive Business Practices Claims

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Chicago-based Grubhub, which allows consumers to order delivery from nearby restaurants via drivers contracted with the company, will pay $24.8 million in restitution, while $200,000 will fund the attorney general's consumer education and enforcement operations. “While we categorically deny the allegations made by the FTC, many of which are wrong, misleading or no longer applicable to our business, we believe settling this matter is in the best interest of Grubhub and allows us to move forward,” the statement said.

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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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Grubhub to Pay $25 Million to Settle Deceptive Business Practices CaseGrubhub, a food delivery platform, has agreed to pay $25 million to resolve allegations of deceptive business practices. The settlement, reached with Illinois Attorney General Kwame Raoul and the Federal Trade Commission, addresses concerns about misleading customers, deceiving drivers, and listing restaurants without consent.
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