Grubhub Settles FTC Charges, Denies Allegations

Grubhub has agreed to pay a $25 million settlement following a Federal Trade Commission (FTC) and Illinois Attorney General investigation into deceptive practices. The company was accused of misleading customers about delivery costs, deceiving drivers about potential earnings, and listing restaurants on its platform without permission, causing reputational harm. The FTC claims that Grubhub added unaffiliated restaurants to its platform to boost its appearance of scale, leading to additional fees and customer dissatisfaction. As part of the settlement, Grubhub must cease these practices, improve transparency regarding fees and driver earnings, and require consent before listing restaurants. Grubhub denies the allegations but states that the settlement is in its best interest to move forward. The settlement aims to hold Grubhub accountable and prevent similar future practices.