Grubhub Agrees to Massive Settlement After Damning Federal Investigation

Grubhub Agrees to Massive Settlement After Damning Federal Investigation


Grubhub will pay a $25 million settlement to federal authorities after an investigation revealed that the food delivery app deceived customers about costs, misled workers about earnings and listed restaurants on the platform without their permission.

The settlement unveiled Tuesday by the Federal Trade Commission requires Grubhub to make “substantial changes to its operations across a number of areas,” according to a statement from the agency.

Beyond the $25 million settlement, the changes involve “telling consumers the full cost of delivery, honestly advertising pay for drivers, and listing restaurants on its platform only with their consent.”

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Grubhub representatives said they “categorically deny” the claims from the FTC, but they will pay the suspended judgment of $25 million to move forward.

The company, which is based in

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