Grubhub Settles $25 Million FTC Case Over Deceptive Practices

The settlement addresses allegations of misleading fees, inflated driver pay claims, and unauthorized restaurant listings.

Grubhub agreed to pay $25 million to settle claims by the FTC and Illinois Attorney General that it misled customers, drivers, and restaurants.
The company allegedly concealed delivery fees, misrepresented driver earnings potential, and added over 325,000 restaurants to its platform without permission.
As part of the settlement, Grubhub must cease deceptive practices, including hidden fees and unauthorized restaurant listings.
The original $140 million judgment was reduced based on Grubhub's reported inability to pay, but the full amount may apply if financial misrepresentation is found.
Most of the settlement funds will be used to refund affected customers, drivers, and businesses, pending court approval of the agreement.