Grubhub's $24M FTC settlement finally pays out to drivers and diners
The FTC has begun distributing $23.8 million to more than 640,000 Grubhub customers and drivers over allegations of deceptive business practices. The payouts follow a lawsuit filed in December 2024 by the FTC and the Illinois Attorney General.
The Federal Trade Commission announced Wednesday it has started distributing $23.8 million to 640,038 Grubhub customers and drivers, most of them receiving checks by mail while some will be paid via PayPal.
The payouts stem from a lawsuit filed against Grubhub in December 2024 by the FTC and the Illinois Attorney General. The complaint accused the food delivery company of several unlawful practices, including misleading claims about how much drivers could earn, restricting customers' access to their own accounts and funds, and adding restaurants to its platform without permission.
Unauthorized restaurant listings
According to the complaint, Grubhub listed as many as 325,000 restaurants that had no affiliation with the company, allegedly to make its platform look larger than it actually was. The complaint also claimed Grubhub sometimes refused to remove restaurants that asked to be delisted, instead trying to push them into paid partnerships.
Under the settlement, Grubhub must change several business practices going forward. It is now required to advertise driver earnings more accurately, give customers a way to dispute account restrictions that block access to funds, and obtain a restaurant's consent before adding it to the platform.
The announcement renews scrutiny of Grubhub's practices just a month after a federal judge granted final approval of a separate settlement worth nearly $25 million, covering roughly 60,000 Grubhub delivery drivers in California. Grubhub is not alone in facing such scrutiny — DoorDash and Uber Eats have also previously faced criticism over driver pay and customer charges, respectively.
