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Grubhub to pay $25 million for misleading customers, restaurants, drivers

(Reuters) -Grubhub settled with the U.S. Federal Trade Commission and Illinois Attorney General Kwame Raoul on Tuesday for allegedly misleading customers about order fees, adding restaurants to its platform without their consent and deceiving drivers about pay. The settlement requires Grubhub to cease the practices and pay $25 million. The agencies sought a $140 million judgment against the company, but reduced it to what Grubhub is able to pay, they said.

(Reuters) -Grubhub settled with the U.S. Federal Trade Commission and Illinois Attorney General Kwame Raoul on Tuesday for allegedly misleading customers about order fees, adding restaurants to its platform without their consent and deceiving drivers about pay. Drivers were told they could earn up to $26 an hour, when in reality only the top 2% achieved those rates, the agencies said. And thousands of restaurants were added to the platform without their consent, resulting in order delays and customer complaints, the FTC and Illinois said.

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