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$23.8M in Payments Going Out to Grubhub Diners, Drivers: FTC
The settlement follows allegations that Grubhub misled drivers on earnings and listed up to 325,000 restaurants without permission.
- On Wednesday, the Federal Trade Commission began distributing over $23.8 million to 640,038 drivers and customers harmed by Grubhub's deceptive practices. Most recipients will receive checks by mail, while some will get payments via PayPal.
- The payouts stem from a 2024 complaint alleging Grubhub misled drivers about potential $40 hourly earnings when median pay was closer to $10. The company also allegedly blocked user accounts with large gift card balances and listed restaurants without consent.
- Under the settlement, Grubhub must now honestly advertise driver pay, provide users a mechanism to dispute blocked accounts, and obtain restaurant consent before listing them on the platform. The firm must also make canceling subscriptions easy.
- Grubhub stated it is "committed to transparency" while categorically denying the FTC allegations, claiming many are "wrong, misleading, or no longer applicable." No claims process is required; checks are already being mailed.
- This distribution follows a separate California settlement last month involving approximately 60,000 drivers. Delivery competitors like DoorDash and Uber Eats have also faced scrutiny over driver compensation and relationships with restaurants.
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Total News Sources11
Leaning Left1Leaning Right0Center8Last UpdatedBias Distribution89% Center
Bias Distribution
- 89% of the sources are Center
89% Center
11%
C 89%
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