#FTC_settlement
Grubhub faces $23.8m FTC settlement over misleading claims and hidden fees

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Grubhub faces $23.8m FTC settlement over misleading claims and hidden fees
The Federal Trade Commission (FTC) has announced a $23.8 million settlement with Grubhub following allegations of deceptive practices, including misleading earnings claims for drivers and hidden fees for customers. The agreement affects 640,038 individuals who will receive payments via check or PayPal. The FTC accused Grubhub of overstating driver pay, with New York City drivers allegedly advertised to earn up to $40/hour but averaging only $10/hour. The company also faced claims of adding undisclosed 'service' and 'small order' fees, pushing final prices beyond initial estimates. Additionally, the FTC alleged that Grubhub listed restaurants on its platform without formal agreements, leading to orders being sent to unpartnered businesses. Customers reportedly lost access to gift card funds due to account locks, with no clear resolution process. While Grubhub denied wrongdoing, it agreed to implement changes such as transparent driver pay disclosures and only listing verified restaurant partners. The settlement highlights ongoing scrutiny of food delivery platforms' business practices.
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August 13, 2026 at 6:36 PM