Grubhub to Pay $25-M To Settle Case With Illinois, FTC

Grubhub Inc., an online food ordering and delivery platform, will pay $25 million to settle allegations of deceptive business practices brought by the Illinois attorney general and the Federal Trade Commission (FTC), officials announced, John O’Connor reported for the Associated Press (AP).

Under the settlement, Grubhub will pay $24.8 million in restitution to affected consumers and $200,000 to support the attorney general’s consumer education and enforcement efforts. I Photo: Grubhub Facebook

Illinois Attorney General Kwame Raoul said his office launched an investigation into the 20-year-old company after receiving numerous consumer complaints and collaborated with 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 to drive scale and accelerate growth,” FTC Chair Lina M. Khan said.

Under the settlement, Grubhub will pay $24.8 million in restitution to affected consumers and $200,000 to support the attorney general’s consumer education and enforcement efforts.

Officials accused Grubhub of misleading customers about delivery costs and subscription benefits, deceiving drivers about their potential earnings, and listing restaurants on its platform without consent — even over the objections of some businesses.