Grubhub Inc., an online food ordering and delivery platform, has agreed to pay $25 million to settle allegations of deceptive business practices with the Illinois attorney general’s office and the Federal Trade Commission. The company will pay $24.8 million in restitution to consumers and $200,000 to fund consumer education and enforcement operations.
The investigation found that Grubhub engaged in illegal practices by misleading customers about delivery costs and benefits, deceiving drivers about their earnings, and listing unaffiliated restaurants on its app without their consent. The company denied wrongdoing but acknowledged the need for changes to its platform to make it easier for consumers to understand fees and for drivers to know what they can earn.
As part of the settlement, Grubhub will remove all unaffiliated restaurants from its listings. A remediation plan will be put in place once court approval is obtained, but the exact number of consumers who may benefit from the payout has not yet been determined by the FTC.
Source: https://apnews.com/article/grubhub-deceptive-practices-settlement-illinois-ftc-e7f9c6f2c76c34301247a650ba5ddee7