💰Grubhub Settles Lawsuit, Payouts to Over 640K Consumers
Grubhub pays out $23.8M after misleading earnings claims
TL;DR
Grubhub settles a lawsuit over misleading driver earnings and account restrictions with a $23.8 million payout to over 640,000 consumers. The settlement requires more accurate advertising of potential earnings and easier access to accounts for customers.
Grubhub has settled a lawsuit filed in December 2024 by the FTC and Illinois Attorney General over misleading claims about driver earnings and customer account restrictions. Over 640,000 consumers will receive a share of $23.8 million as part of this settlement. This affects anyone who used Grubhub's services during the affected period and highlights ongoing scrutiny in the food delivery industry. The company must now be more transparent about earnings and provide easier access to accounts for customers.
Key Points
Over 640,000 consumers will receive payouts from Grubhub's settlement with the FTC and Illinois Attorney General.
$23.79 million is being distributed to settle claims of misleading earnings and account restrictions by Grubhub.
Grubhub listed up to 325,000 restaurants not affiliated with the company to appear larger on its platform.
The settlement requires accurate advertising of potential driver earnings and easier access to accounts for customers.
Recipients will receive checks in the mail or payments through PayPal starting Wednesday.
Why It Matters
If you're a Grubhub customer who faced account restrictions or were misled about earnings, this settlement could mean compensation. The FTC's actions also set a precedent for transparency and accountability in the food delivery industry.
Frequently Asked Questions
Why does this matter?
If you're a Grubhub customer who faced account restrictions or were misled about earnings, this settlement could mean compensation. The FTC's actions also set a precedent for transparency and accountability in the food delivery industry.
What happened?
Grubhub settles a lawsuit over misleading driver earnings and account restrictions with a $23.8 million payout to over 640,000 consumers. The settlement requires more accurate advertising of potential earnings and easier access to accounts for customers.
Comments
Be the first to comment
Enjoyed this article?
Get it daily. 7am. Free. Reads in 5 minutes.
Join 2,950 builders reading daily.