{"id":2381649,"date":"2024-12-18T18:51:02","date_gmt":"2024-12-18T23:51:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/grubhub-agrees-to-25-million-settlement-cheated-its-customers-deceived-its-drivers-and-undermined-restaurants\/"},"modified":"2024-12-18T18:51:45","modified_gmt":"2024-12-18T23:51:45","slug":"grubhub-agrees-to-25-million-settlement-cheated-its-customers-deceived-its-drivers-and-undermined-restaurants","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/grubhub-agrees-to-25-million-settlement-cheated-its-customers-deceived-its-drivers-and-undermined-restaurants\/","title":{"rendered":"Grubhub Agrees to $25 Million Settlement: \u2018Cheated its Customers, Deceived Its Drivers and Undermined Restaurants\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgrubhub-agrees-to-25-million-settlement-cheated-its-customers-deceived-its-drivers-and-undermined-restaurants%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2381649&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Grubhub has reached a $25 \u200dmillion\u2063 settlement\u200c with federal authorities following an inquiry by the federal\u200d Trade Commission (FTC) revealing \u200bdeceptive practices. The investigation found that \u2063Grubhub\u200c misled\u200b customers about delivery \u200bcosts, misrepresented earnings\u200b to drivers, and listed restaurants on it&#8217;s \u2064platform \u2062without their \u2062consent. Along with the financial settlement, Grubhub is required to \u200dimplement substantial\u2063 operational changes, including openness in delivery fees, accurate advertising of\u200c drivers&#8217;\u200c earnings, and \u200cobtaining consent from restaurants\u2062 before \u200dlisting them.<\/p>\n<p>Despite denying the allegations, Grubhub agreed to pay the settlement\u200c to facilitate changes aimed \u200bat enhancing clarity regarding fees and partnerships. The FTC&#8217;s findings indicated that Grubhub&#8217;s practices, which began around 2019, allowed the company\u200b to expand its \u2063user \u200dbase but led to increased costs for consumers and damaged reputations for the\u2063 restaurants involved. The settlement follows a\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fda-investigation-into-juul-could-vaporize-e-cigarette-giant\/\" title=\"FDA Investigation Into Juul Could Vaporize E-Cigarette Giant\">multi-year investigation<\/a> into the deceptive practices, with most of the financial restitution intended \u200dto compensate \u2063affected consumers. Illinois Attorney General Kwame Raoul emphasized the settlement&#8217;s importance in addressing these illegal business practices.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>Grubhub will pay a $25 million settlement to federal authorities after an investigation revealed that the <a href=\"https:\/\/amzn.to\/3YuVZYV\">food delivery app deceived customers<\/a> about costs, misled workers about earnings and listed restaurants on the platform without their permission.<\/p>\n<p>The settlement unveiled Tuesday by the Federal Trade Commission requires Grubhub to make &ldquo;substantial changes to its operations across a number of areas,&rdquo; according to a <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/12\/ftc-illinois-attorney-general-take-action-against-grubhub-harming-diners-workers-small-businesses\" target=\"_blank\" rel=\"noopener\">statement<\/a> from the agency.<\/p>\n<p>Beyond the $25 million settlement, the changes involve &ldquo;telling consumers the full cost of delivery, honestly advertising pay for <a href=\"https:\/\/www.westernjournal.com\/may-risk-new-woke-bill-signed-will-kill-1200-jobs-thousands-almost-overnight\/\" target=\"_blank\" rel=\"noopener\">drivers<\/a>, and listing restaurants on its platform only with their consent.&rdquo;<\/p>\n<p>Grubhub representatives said they &ldquo;categorically deny&rdquo; the claims from the FTC, but they will&nbsp;pay the suspended judgment of $25 million to move forward.<\/p>\n<p>The company, which is based in Chicago, Illinois, agreed to &ldquo;make changes to its platform to make it even easier for diners to understand the fees we charge, how we advertise earnings potential for delivery partners, and how we communicate about Grubhub+, among other updates,&rdquo; according to <a href=\"https:\/\/www.cbsnews.com\/chicago\/news\/grubhub-settlement-deceptive-practices-lawsuit-deliver-drivers-diners\/\" target=\"_blank\" rel=\"noopener\">CBS News<\/a>.<\/p>\n<p> <script type=\"text\/javascript\"> \t\t\tif ( getCookie( \"ff_subbed\" ) ) { \t\t\t\tdocument.getElementById(\"stnvideo\").remove() \t\t\t} \t\t<\/script> <\/p>\n<p>The FTC said that Grubhub has &ldquo;added unaffiliated restaurants to its platform without their permission&rdquo; since at least 2019.<\/p>\n<p>That practice allegedly enabled the firm to increase growth, since &ldquo;the more restaurants that appeared to be available on a platform, the more likely consumers are to use it.&rdquo;<\/p>\n<p>But the practice also resulted in higher expenses for customers, who paid greater fees for those orders.<\/p>\n<p>The <a href=\"https:\/\/www.westernjournal.com\/1100-pizza-hut-delivery-drivers-set-get-axe-ahead-blue-state-minimum-wage-hike\/\" target=\"_blank\" rel=\"noopener\">restaurants<\/a> were allegedly blamed for Grubhub&rsquo;s failures and saw &ldquo;damaged reputations and lost revenue.&rdquo;<\/p>\n<p>When restaurants contacted Grubhub to be removed from the app, staff members would allegedly &ldquo;try to sell them paid partnerships&rdquo; and often only pulled the restaurants from the platform &ldquo;after they threatened legal action.&rdquo;<\/p>\n<p>FTC Chair <a href=\"https:\/\/www.westernjournal.com\/damning-gop-report-exposes-biden-harris-ftc-targeted-elon-musks-x\/\" target=\"_blank\" rel=\"noopener\">Lina Khan<\/a> commented that the company pursued the deceptive practices &ldquo;all in order to drive scale and accelerate growth.&rdquo;<\/p>\n<p>&ldquo;Today&rsquo;s action holds Grubhub to account, putting an end to these illegal practices and securing nearly $25 million for the people cheated by Grubhub&rsquo;s tactics,&rdquo; she said.<\/p>\n<p>&ldquo;There is no &lsquo;gig platform&rsquo; exemption to the laws on the books.&rdquo;<\/p>\n<p>The settlement included a $140 million monetary judgment, but was partially suspended &ldquo;based on the company&rsquo;s inability to pay the full amount,&rdquo; according to the FTC.<\/p>\n<p>Most of the diminished amount of $25 million&nbsp; &ldquo;will be used to refund consumers harmed by the company&rsquo;s conduct,&rdquo; the agency said.<\/p>\n<p>The company remarked in a statement that &ldquo;we believe the FTC agreed to suspend a portion of the judgment because we negotiated with them in good faith and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hunter-biden-files-lawsuit-against-laptop-repair-shop-owner\/\" title=\"Hunter Biden files lawsuit against laptop repair shop owner\">provided extensive details<\/a> about our business and financial performance,&rdquo; according to <a href=\"https:\/\/www.cnbc.com\/2024\/12\/17\/grubhub-ftc-settlement-harmful-practices-diners-workers.html\" target=\"_blank\" rel=\"noopener\">CNBC<\/a>.<\/p>\n<p>Illinois Attorney General Kwame Raoul added in a statement d by the FTC that the settlement was the &ldquo;culmination of a multi-year investigation into deceptive and illegal business practices.&rdquo;<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> \t\t\t\t\t\t<label>* Name<\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"name\" required> \t\t\t\t\t<\/div>\n<div class=\"sc--field\"> \t\t\t\t\t\t<label>* <\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"\" required> \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t<label>* Message<\/label> \t\t\t\t\t<br \/> \t\t\t\t\t<textarea name=\"message\" required><\/textarea> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> \t\t\t\t\t<input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\"> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> \t\t<script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script> \t     \t\t\t\t\t\t     \t\t\t\t\t<\/div>\n<p style=\"border: 1px solid #f5f5f5; padding: 16px;\">Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. <a href=\"https:\/\/www.westernjournal.com\/advertise-us\/?wj_source=article\">Advertise Today<\/a>.<\/p>\n<p><script>console.log(\"ad slot (BA1)\")<\/script> \t\t<\/p>\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<style> \t\t\t \t\t\t.insticator-unit.type-commenting{margin: 0 10px 25px 10px}@media screen and (max-width:1060px){#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{margin: 0 auto 25px auto !important;}}#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{height: 280px !important; width: 336px !important} \t\t<\/style>\n<div class=\"insticator-unit type-commenting\">\n<div class=\"insticator-ads\"> \t\t\t\t \t\t\t\t \t\t\t\t<script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-1\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-2\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-1\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-2\").remove() \t\t\t\t\t} \t\t\t\t<\/script> \t\t\t<\/div>\n<div class=\"insticator-ads additional\"> \t\t\t\t \t\t\t\t \t\t\t\t<script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-3\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-4\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-3\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-4\").remove() \t\t\t\t\t} \t\t\t\t<\/script> \t\t\t<\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Grubhub has agreed to a $25 million settlement with federal authorities following an investigation that found the food delivery service misled customers about fees, provided inaccurate earnings information to workers, and included restaurants on its platform without their consent. The Federal Trade Commission announced the settlement on Tuesday, which mandates Grubhub to implement significant operational changes. These changes include clearly communicating delivery costs, accurately advertising driver pay, and ensuring restaurants are listed only with their approval. Although Grubhub denies the FTC&#8217;s allegations, they will pay the settlement to move forward. The FTC noted that since at least 2019, Grubhub had added unauthorized restaurants to boost its growth at the expense of customer costs and restaurant reputations. When restaurants sought removal from the app, staff allegedly pressured them into paid partnerships or only complied after legal threats. FTC Chair Lina Khan emphasized that this action holds Grubhub accountable for its deceptive practices while securing nearly $25 million for affected consumers. The total judgment was initially set at $140 million but was reduced due to Grubhub&#8217;s financial situation; most of the remaining amount will be used for consumer refunds. Illinois Attorney General Kwame Raoul stated that this settlement concludes a multi-year investigation into these illegal practices<\/p>\n","protected":false},"author":1,"featured_media":2381650,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/12\/Grubhub-settlement.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[5379,47085,17449,4131,9811],"class_list":["post-2381649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-customers","tag-food-delivery","tag-grubhub","tag-restaurants","tag-settlement"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/12\/Grubhub-settlement.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2381649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2381649"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2381649\/revisions"}],"predecessor-version":[{"id":2381653,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2381649\/revisions\/2381653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2381650"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2381649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2381649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2381649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}