CHICAGO (WBBM NEWSRADIO) - The food delivery app Grubhub has reached a $25 million settlement for what the Illinois Attorney General calls “deceptive practices.”
The Federal Trade Commission (FTC) and Illinois AG Kwame Raoul announced a settlement with Grubhub for alleged unlawful practices, harming diners, gig workers and small businesses.
FTC Chair Lina Khan said the company must make changes to its operations.
“Together, we have ordered Grubhub to pay $25 million for the harm it has caused, which will allow us to put money back into customers’ pockets,” Khan said. “Our order will also require Grubhub to advertise the full cost of delivery, honestly advertise pay for drivers and list restaurants on its platform, only with their consent.”
Raoul said the investigation started after his office received complaints from consumers:
“The settlement we reached requires immediate and permanent termination of illegal conduct and provides direct relief to consumers,” Raoul said.
The FTC will work to identify the restaurants, diners and drivers eligible for payouts or refunds once the payment from Grubhub is made.
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