Grubhub, one of the country’s largest food delivery platforms, has agreed to pay $25 million to settle allegations from the Federal Trade Commission and the Illinois Attorney General that it engaged in deceptive and unfair practices targeting restaurants, delivery drivers and consumers. The settlement, announced on Friday, will include substantial changes to Grubhub’s business practices as part of a broader crackdown on “junk fees.”
The charges stem from a multi-year investigation that revealed a pattern of misconduct by Grubhub. According to the FTC, the company misled diners about delivery costs, blocked users from accessing their accounts and funds, falsely advertised earnings to potential delivery drivers and listed restaurants on its platform without their consent.
