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Grubhub Settles with FTC and State of Illinois Over Misrepresentation

 12/23/2024

Grubhub recently settled a civil action filed by the U.S. Federal Trade Commission and the Attorney General of Illinois.  At issue were serious allegations of unethical business practice including misrepresentation.  These involved: -

 

  • Adding restaurants to the company platform without consent.
  • Misleading delivery drivers over potential earnings.
  • Imposing hidden fees and other unethical and unfair practices.

 

Grub Hub settled for $25 million compared to the original $140 million judgment against the company.  The reduction was based on the inability of Grub Hub to pay the higher penalty, although this may be reviewed following evaluation of the financial position of the Company.  Allegations raised by the FTC were challenged by Grubhub as being “misleading” or alternatively no longer applicable to their business model.