FTC Sends $23.8 Million to Grubhub Drivers and Diners Harmed by Deceptive Practices
Summary
The FTC and Illinois Attorney General distributed 640,038 payments totaling more than $23.8 million to Grubhub drivers and diners, stemming from a late-2024 $25 million settlement over allegations Grubhub deceived drivers about potential earnings, blocked diners from accounts and gift card redemptions, and listed restaurants on its platform without their consent. The settlement required Grubhub to honestly advertise driver pay, provide a mechanism to dispute blocked accounts, and only list restaurants with their consent.
Key Changes
- 640,038 payments totaling over $23.8 million distributed to affected drivers and diners
- Distribution stems from a late-2024 $25 million settlement with Grubhub and the Illinois Attorney General
- Underlying settlement required honest driver pay advertising, dispute mechanisms for blocked accounts, and consent-based restaurant listings
Affected Industries
Source
Key Dates
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