3 sources·Business

Grubhub Settles $25 Million FTC Complaint Over Deceptive Practices

Grubhub agrees to settle FTC allegations of misleading fees and advertising, committed to changing business practices as part of the resolution.

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Updated: Dec 18th, 2024, 3:51 PM ET

Summary

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Grubhub has agreed to a $25 million settlement following allegations from the FTC of deceptive business practices, including hiding delivery fees and inflating driver earnings. The company will implement changes, including transparent pricing and obtaining restaurant consent for listings. Grubhub denied the allegations but settled to move forward. This case underscores ongoing scrutiny of 'junk fees' in the food delivery industry and highlights the impact on consumers and restaurants.

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