Comment on Grubhub agrees to pay $25 million to settle claims it misled customers, restaurants and drivers

Grubhub agrees to pay $25 million to settle claims it misled customers, restaurants and drivers

Grubhub has agreed to pay $25 million and put an end to practices that included misleading customers over the costs of using the food delivery service and listing restaurants without their consent under a proposed settlement with the Federal Trade Commission and Illinois Attorney General Kwame Raoul’s office, the agencies said on Tuesday. Most of the money from the $25 million settlement with the Chicago-based company is to be returned to customers, drivers and affected businesses nationally, FTC Midwest Region Director Jason Adler said.  The settlement is “the culmination of a multiyear investigation into deceptive and illegal business practices,” Raoul said at a news conference in Chicago. FTC Chair Lina Khan zeroed in on Grubhub’s claims of low or nonexistent delivery fees for users including Grubhub Plus subscribers.

 

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