Consumers Affected
640,038
The FTC and the Illinois Attorney General took action against food delivery company Grubhub for deceptive earnings claims, blocking diners from accounts and funds, and unfairly listing restaurants without permission. The settlement required Grubhub to change its operations and provide over $23.8 million in refunds to 640,038 affected consumers.
Grubhub was ordered to honestly advertise driver pay, provide a mechanism for users to dispute blocked accounts, and list restaurants only with their consent. The FTC is distributing over $23.8 million in refunds to 640,038 consumers.
In-house legal teams should review contracts with food delivery platforms, marketing agreements, and terms of service. They should check clauses related to earnings representations, consent for listing restaurants, and account management procedures. Ensure that any advertising claims are substantiated and that platform listings are authorized. Also review dispute resolution mechanisms for account blocks and refund obligations.
Entity
Grubhub
Industry
Food DeliveryOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/08/ftc-sends-more-238-million-drivers-diners-harmed-grubhubs-deceptive-advertising-claims-other
Grubhub Order
https://www.ftc.gov/system/files/ftc_gov/pdf/Grubhub-Order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"food delivery company Grubhub"
"deceiving drivers about how much money they would make delivering food"
"unfairly and deceptively listing restaurants on its platform without their permission"
"the FTC and the Illinois Attorney General"
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$49.8M
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