Grubhub will pay $25 million to settle a lawsuit from the FTC and Illinois AG over unlawful practices, including misleading customers about delivery costs and deceiving drivers.
The agencies claim that Grubhub hid the true cost of delivery services, resulting in a final price often double the advertised cost due to hidden fees.
In addition, Grubhub had as many as 325,000 unaffiliated restaurants on its platform, leading to significant harm to both those restaurants and customers.
Grubhub stated, 'While we categorically deny the allegations made by the FTC, we believe settling this matter is in the best interest of Grubhub to move forward.'
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