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Grubhub accused of falsely adding restaurants, tricking customers and drivers in $25M settlement


Grubhub accused of falsely adding restaurants, tricking customers and drivers in $25M settlement

CHICAGO -- Illinois' attorney general and the Federal Trade Commission announced a $25 million settlement over alleged deceptive practices that harmed restaurants, customers and delivery drivers.

Illinois AG Kwame Raoul's office initiated an investigation into Grubhub's practices after receiving dozens of consumer complaints about the company and worked with the FTC.

The investigation alleges the company misled consumers about the cost of delivery and the benefits of a Grubhub Plus subscription, misled drivers about the amount of money they could make and listed some restaurants on Grubhub's app without their knowledge or consent.

"Our investigation found that 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," said FTC Chair Lina M. Khan. "Today's action holds Grubhub to account, putting an end to these illegal practices and securing nearly $25 million for the people cheated by Grubhub's tactics. There is no 'gig platform' exemption to the laws on the books."

In addition to restitution for customers, authorities ensured the settlement prevents such alleged deceptive practices going forward.

Grubhub will be required of the following going forward.

They will also be prohibited from adding restaurants without permission going forward.

Grubhub released the following statement.

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