Grubhub's extensive misconduct led to the settlement of $25 million with the FTC and Illinois Attorney General, highlighting deceptive practices that misled customers and drivers.
The FTC found that Grubhub falsely listed 325,000 unaffiliated restaurants on its platform without consent since 2019, leading to customer confusion and damaged reputations for those businesses.
Grubhub's alleged 'pricing shell game' involved adding extra fees under misleading labels like 'service fees', directly contradicting their advertising of a flat delivery rate.
The company also faced allegations of locking customers' accounts with large gift card balances, contributing to consumer frustration and reinforcing issues with customer service.
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