Jonah Meadows, Patch Staff
|Updated Tue, Dec 17, 2024 at 2:56 pm CT
CHICAGO — Grubhub will pay $25 million to resolve allegations from the Federal Trade Commission and the Illinois Attorney General that the Chicago-based food delivery company engaged in deceptive and unfair practices harming diners, drivers and restaurants.
The settlement announced Tuesday by FTC Commissioner Lina Khan and Attorney General Kwame Raoul follows a multi-year investigation into allegations of misleading pricing, unauthorized restaurant listings and inflated driver earnings claims.
“Our investigation found that Grubhub tricked its customers, deceived its drivers and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub — all in order to drive scale and accelerate growth,” Khan said in a statement.
“Today’s action holds Grubhub to account, putting an end to these illegal practices and securing nearly $25 million for the people cheated by Grubhub’s tactics," she said. "There is no ‘gig platform’ exemption to the laws on the books.”
The settlement includes a $140 million judgment against Grubhub, but that was partially suspended due to the company's inability to pay the full amount.
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