Grubhub faces charges from the Federal Trade Commission and Illinois Attorney General Kwame Raoul over illegal conduct, including misleading customers about delivery fees, deceiving drivers about potential earnings, and listing restaurants on its platform without permission. The company plans to pay $25 million to settle the lawsuit.
The agents allege that Grubhub hid the true cost of its delivery services and that “service fees” and “small order fees” often resulted in final prices double what was originally advertised. I am doing it. They also claim that Grubhub's advertising inflated hourly wages far above drivers' realistic earnings.
Additionally, Grubhub has 325,000 unaffiliated restaurants on its platform, which the FTC alleges has caused significant harm to both unaffiliated restaurants and customers.
The proposed settlement requires Grubhub to stop this practice. “While we categorically deny the FTC's allegations, many of which are false, misleading, and no longer apply to our business, it is Grubhub's commitment to resolve this matter,” Grubhub said in a statement. “We can take action because we believe it is in the best interest of the United States.” forward. “