FTC Is Sending $23,800,000 to 640,000 Consumers Over Grubhub Settlement

The Federal Trade Commission (FTC) is sending more than $23.8 million in payments to over 640,000 consumers impacted by Grubhub’s practices.

The agency says the funds come from a $25 million settlement reached in late 2024 with the company and the Illinois Attorney General.

Grubhub allegedly deceived drivers about earnings, blocked diner accounts and funds, and listed restaurants without consent.

Said FTC Chair Lina M. Khan at the time,

“Our investigation found that Grubhub tricked its customers, deceived its drivers, and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub—all in order to drive scale and accelerate growth. Today’s action holds Grubhub to account, putting an end to these illegal practices and securing nearly $25 million for the people cheated by Grubhub’s tactics. There is no ‘gig platform’ exemption to the laws on the books.”

The settlement required the company to reform its pay advertising, create account dispute mechanisms, and obtain consent for restaurant listings.

… Continue reading the full article at the original source below.