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Grubhub pays $25 million for allegedly tricking customers and lying to drivers
The FTC accused Grubhub of tacking on junk fees to orders.
Grubhub has agreed to pay $25 million to settle a Federal Trade Commission lawsuit that claimed the food delivery service misled customers and drivers while also damaging the reputation of restaurants. Along with advertising “highly inflated hourly pay rates for drivers,” the FTC’s initial complaint accused Grubhub of hiding “the true cost of its services” by adding delivery fees that raised the price of customers’ final orders. The agency claimed Grubhub makes the plan easy to sign up for but difficult to cancel while also allegedly blocking the accounts of users with large gift card balances.
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