Grubhub to pay $25M in deceptive practices settlement with Illinois attorney general and the FTC
Grubhub Inc. will pay $25 million to settle a dispute over alleged deceptive business practices with the Illinois attorney general and the Federal Trade Commission
SPRINGFIELD, Ill. (AP) — Grubhub Inc., an online food ordering and delivery platform, will pay $25 million to settle a dispute over alleged deceptive business practices with the Illinois attorney general and the Federal Trade Commission, officials said Tuesday.
Attorney General Kwame Raoul said he launched an investigation into the 20-year-old operation after receiving “dozens” of consumer complaints and engaged the FTC on the nationwide settlement.
“Grubhub tricked its customers, deceived its drivers and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub — all in order to drive scale and accelerate growth,” FTC chairperson Lina M. Khan said.
Chicago-based Grubhub, which allows consumers to order delivery from nearby restaurants via drivers contracted with the company, will pay $24.8 million in restitution, while $200,000 will fund the attorney general's consumer education and enforcement operations.
