Grubhub’s $24M FTC settlement is finally reaching diners and drivers

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Grubhub’s $24M FTC settlement is finally reaching diners and drivers

TechCrunch · 3 hours ago

More than 640,000 Grubhub customers and drivers are due to receive a share of $23.8 million after the US Federal Trade Commission accused the food-delivery company of deceptive practices. The payments mark the practical outcome of a 2024 case alleging that Grubhub overstated potential driver earnings, restricted access to some customer accounts and funds, and listed restaurants without their approval.

Most recipients will receive cheques by post, while some will be paid through PayPal. The FTC said Grubhub had listed up to 325,000 unaffiliated restaurants to make its platform appear larger, and the settlement requires clearer driver-earnings claims, an appeal process for restricted accounts, and restaurant consent before listings; it follows a separate California driver settlement worth nearly $25 million.

  • 640,038 Grubhub users and drivers will share $23.8 million.
  • Settlement addresses alleged misleading earnings claims and unauthorised restaurant listings.
  • Grubhub must change several customer, driver and restaurant practices.

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