The Federal Trade Commission initiated the distribution process this week, sending checks and PayPal transfers to settle a December 2024 lawsuit filed alongside the Illinois Attorney General. Investigators found that Grubhub maintained roughly 325,000 unaffiliated restaurant listings, often refusing to remove them even after direct requests from business owners. The company reportedly leveraged these unauthorized listings to pressure restaurants into paid partnerships.
In section Startups & Technology
Grubhub Begins Paying $24 Million to Resolve Deceptive Practice Claims
Over 640,000 Grubhub customers and workers are receiving a slice of a $23.8 million settlement, concluding federal allegations that the delivery giant misled drivers on potential pay and listed restaurants without authorization to artificially inflate its platform size.
Beyond restaurant relations, the settlement mandates strict operational shifts. Grubhub must now secure explicit consent before listing any eatery and implement transparent systems for users to contest account lockouts that freeze their funds. Advertising regarding driver earnings must also meet new accuracy standards. This payout follows a separate $25 million settlement finalized just last month for California-based drivers, highlighting a broader trend of regulatory scrutiny facing major delivery platforms like DoorDash and Uber Eats over their interactions with workers and local businesses.
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