Attorney General Raoul Announces Distribution Of Settlement Funds To Drivers And Customers Harmed By Grubhub’s Deceptive Business Practices
The FTC is distributing more than $23.8 million nationwide after a settlement over Grubhub’s alleged misleading conduct toward drivers, diners and restaurants.
CHICAGO – Attorney General Kwame Raoul announced that drivers harmed by Grubhub’s deceptive earnings claims and consumers harmed by the company’s misleading and unlawful conduct will soon receive financial relief. Under a settlement obtained by Raoul, in partnership with the Federal Trade Commission (FTC), the FTC is sending payments totaling more than $23.8 million to drivers and consumers nationwide.
“This settlement was the culmination of a multi-year investigation that revealed Grubhub’s deceptive business practices were negatively affecting participants in nearly every aspect of the company’s transactions,” Raoul said. “I am pleased that customers and drivers will soon see relief for the harm caused by Grubhub’s unlawful actions, and I remain committed to holding businesses like Grubhub accountable for unfair and deceptive business practices.”
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Raoul’s office initiated an investigation into Grubhub’s practices after receiving dozens of consumer complaints about the company. Raoul alleged that Grubhub misled consumers about the cost of delivery and the benefits of a Grubhub Plus subscription; blocked consumers from their accounts and funds; misled drivers about the amount of money they could make; and listed restaurants on Grubhub’s app without their knowledge or consent, and in some instances, over their explicit objections.
The FTC will send checks or PayPal payments to 640,038 affected consumers. The FTC started the process of mailing checks this week, and most consumers will receive a check in the mail. Check recipients should cash their checks within 90 days, as indicated on the check. PayPal recipients should redeem their PayPal payments within 30 days.
Consumers who have questions about their payment should contact the refund administrator, Analytics Consulting LLC, at 888-446-4992, or visit the FTC website to view frequently asked questions about the redress process. The commission never requires people to pay money or provide account information to get a payment.
In addition to restitution for customers, Attorney General Raoul’s office and the FTC ensured the settlement prevents such deceptive practices going forward.
Under the settlement terms, Grubhub was ordered to make substantial changes to its operations across several areas, including honestly advertising pay for drivers, providing users with a mechanism to dispute blocked accounts, and listing restaurants on its platform only with their consent.
Consumer Protection Division Chief Susan Ellis, Consumer Fraud Bureau Chief Greg Grzeskiewicz, Deputy Bureau Chief Jacob Gilbert, Consumer Counsel Thomas James, and Assistant Attorneys General William Wingo and Wilton Person handled the settlement for Raoul’s Consumer Fraud Bureau.
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