The settlement with Grubhub requires the company to cease misleading practices and pay a $25 million penalty, though they initially faced a $140 million judgment.
Grubhub's spokesperson stated that while they deny the allegations made by the FTC, settling was deemed in the best interest of the company to move forward.
According to the lawsuit, Grubhub's practices included hiding fees until the last minute, which misled customers into thinking they could avoid these costs.
The FTC asserted that misleading drivers regarding pay and adding restaurants without consent were harmful practices that violated federal and state law.
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