Grubhub has agreed to a $25 million settlement with the FTC over allegations of misleading customers and drivers, inflating delivery fees, and listing restaurants without their consent.
Grubhub has agreed to pay $25 million to settle a Federal Trade Commission lawsuit that claimed the food delivery service misled customers and drivers while also damaging the reputation of restaurants. The proposed settlement will require Grubhub to make several changes to the platform, such as showing the total delivery cost when customers place an order.
Along with advertising “highly inflated hourly pay rates for drivers,” the FTC’s initial complaint accused Grubhub of hiding “the true cost of its services” by adding delivery fees that raised the price of customers’ final orders. The agency claimed that starting around 2019, Grubhub began advertising lower delivery fees to attract more customers but then began tacking on a “service” fee that increased the cost of orders anyway. The FTC also alleged the company charged Grubhub Plus members for delivery despite advertising the subscription as having “free” or “$0” deliveries. The agency claimed Grubhub makes the plan easy to sign up for but difficult to cancel while also allegedly blocking the accounts of users with large gift card balances. Additionally, the FTC accused Grubhub of adding restaurants to the platform even if they never signed up to sell food on the service. “Grubhub has had as many as 325,000 unaffiliated restaurants on its platform — more than half of all of the available restaurants on Grubhub,” the FTC claims. As a result, many customers wound up having issues with their orders, resulting in bad feedback for unaffiliated restaurants. Grubhub is now required to show customers the full cost of delivery and can no longer add “junk fees” to orders. It’s also banned from listing unaffiliated restaurants on the platform, and can only make driver earnings claims “that it can back up with evidence and in writing.” Grubhub must also notify customers when they’re banned and offer a way to appeal the decision, as well as make it easier to cancel Grubhub Plu
Grubhub FTC Lawsuit Deceptive Practices Delivery Fees Restaurants Drivers
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Grubhub to pay $25 million in FTC settlement over harmful practices against diners, workersThe complaint claims that Grubhub deceived diners about delivery costs and blocked access to their accounts.
Read more »
Grubhub to Pay $25 Million Over Deceptive PracticesGrubhub will pay a $25 million settlement to resolve a lawsuit alleging it engaged in deceptive practices that harmed diners, workers, and restaurants. The FTC claims Grubhub misled customers about delivery fees, blocked account access, and listed restaurants without permission.
Read more »
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.
Read more »
Grubhub to Pay $25 Million to Settle Lawsuit Over Alleged Unfair PracticesThe Federal Trade Commission (FTC) announced that Grubhub will pay $25 million to settle a lawsuit alleging deceptive practices that harmed diners, workers, and small businesses. The complaint accuses Grubhub of misleading customers about delivery costs, blocking account access, and deceiving workers about earnings. Grubhub is also alleged to have listed restaurants on its platform without their permission, driving up delivery fees and damaging their reputations.
Read more »
Grubhub to Pay $25 Million to Settle Lawsuit Over Deceptive PracticesGrubhub faces a $25 million settlement for allegedly misleading diners, exploiting workers, and harming unpartnered restaurants.
Read more »
Grubhub to Pay $25 Million to Settle Lawsuit Over Unlawful Business PracticesGrubhub has agreed to pay $25 million to settle Federal Trade Commission (FTC) and Illinois Attorney General claims that it engaged in deceptive and unfair practices harming diners, workers, and small businesses.
Read more »