Grubhub will pay $25 million to settle a lawsuit from the Federal Trade Commission and Illinois Attorney General Kwame Raoul over unlawful practices, including misleading customers about delivery costs, deceiving drivers about potential earnings, and listing restaurants on its platform without their permission.
The agencies claim that Grubhub hid the true cost of its delivery services, resulting in a final price that was often double what was originally advertised due to “service fees” or “small order fees.” They also claim Grubhub’s ads inflated hourly pay rates well above what drivers would realistically earn.
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