More than 640,000 Grubhub drivers and customers are set to receive a share of $23.8 million following allegations that the food delivery company misled workers about potential earnings and engaged in other deceptive practices.
The Federal Trade Commission announced Wednesday that it is distributing the money to 640,038 consumers, with most receiving checks by mail and some getting payments through PayPal. The payouts follow a lawsuit filed by the FTC and Illinois attorney general in December 2024.
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Settlement Follows Multiple Allegations
The complaint accused Grubhub of misleading drivers about potential earnings, restricting customers’ access to their accounts and funds, and listing restaurants on its platform without their permission.
According to the complaint, Grubhub at one point listed as many as 325,000 restaurants that were not affiliated with the company. Regulators alleged that these listings helped make the platform appear larger, while some restaurants that requested removal were allegedly encouraged to enter paid partnerships instead.
Under the settlement, Grubhub must make several changes to its business practices. Driver earnings claims must be more accurate, customers must have a way to challenge account restrictions that prevent access to their accounts or funds, and restaurants must give consent before being listed on the platform.
Grubhub Faces Further Legal Pressure
The payout comes only a month after a federal judge gave final approval to a separate settlement worth nearly $25 million involving about 60,000 Grubhub delivery drivers in California.
Other food delivery companies have also faced scrutiny over their treatment of drivers, customers and restaurants. DoorDash has faced criticism and legal challenges over driver compensation, while Uber Eats has faced allegations involving customer charges and restaurant listings.
