GrubHub Fined $25M For Deceiving Users And Workers

Axios reports:

Grubhub will pay a $25 million settlement after an investigation by the Federal Trade Commission alleged deceptive and unlawful business practices. The settlement will require the company to make major changes and is a part of the FTC’s ongoing targeting of junk fees. The complaint alleges that Grubhub deceived users about delivery costs, deceived workers about how much they would make and listed up to 325,000 restaurants on its platform without permission.

The complaint says Grubhub hid the true cost of its services and tacked on junk fees, often called “service fees” and “small order fees,” making the price much higher than originally advertised. Grubhub also advertised inflated hourly pay rates, blocked customers from accessing their accounts and delayed removing restaurants placed onto the platform without their permission, according to the complaint.

Read the full article. The fine was originally $140 million, which GrubHub said it could not pay. As I reported yesterday, Trump is expected to replace FTC chair Lina Khan with a Republican member of the commission.

Grubhub is paying $25 million to settle charges brought by the FTC and the Illinois Attorney General.

The company deceived diners about delivery costs, deceived workers about how much money they would make, and engaged in other illegal practices.

www.ftc.gov/news-events/…

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— More Perfect Union (@moreperfectunion.bsky.social) December 17, 2024 at 2:51 PM