According to FTC Chair Lina Khan, 'Grubhub tricked its customers, deceived its drivers, and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub.'
The FTC's complaint argued that Grubhub misled users by advertising lower delivery fees while adding a "service" fee that inflated the eventual cost of orders.
Grubhub has had as many as 325,000 unaffiliated restaurants on its platform, resulting in complaints and poor feedback from customers about these restaurants.
The $25 million settlement will force Grubhub to show the total delivery cost upfront and ban listing unaffiliated restaurants on their platform.
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