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Grubhub Begins $24 Million Payout To Drivers And Customers

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.

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.

Ring Makes New Encryption Standard Default For Cloud-Based Features

Amazon’s smart home division Ring is introducing a new encryption standard that will become the default for video protection and user controls, while allowing the company to offer more cloud-based features.

The standard, called TAKE, or “Throw Away the Key Encryption,” is designed to balance privacy with features that can be limited by end-to-end encryption, including video search, descriptions and access for trusted users.

Temporary Keys Support Cloud Features

Under TAKE, Ring uses rotating encryption keys that are temporarily stored in the cloud and accessible only when needed to provide features activated by users. Once a request is completed, the company says the relevant keys will be deleted within 24 hours.

The system allows Ring to temporarily decrypt and process videos for cloud services such as Smart Alerts, which can notify users when people, vehicles or packages appear in a camera’s view. The company said in a blog post that the encryption key is deleted after the feature has been used.

Amazon’s technical white paper says TAKE was developed using Messaging Layer Security, an open messaging standard created by the Internet Engineering Task Force.

Users Can Still Choose End-To-End Encryption

TAKE will begin rolling out to customers in September and will become the default worldwide. Ring users will still be able to manually select end-to-end encryption instead.

The new system also includes several options for recovering encryption keys. Users who lose access to their device can authenticate by standing near their Ring cameras, while passphrases, cloud backups, another approved device or passkeys can provide alternative recovery methods.

Ring said the approach is intended to preserve access to cloud features without requiring users to give up control of their video encryption keys.

Privacy Concerns Remain

The announcement comes after months of scrutiny over Ring’s use of facial recognition. Its Familiar Faces feature can identify people appearing in camera footage.

In June, a class-action lawsuit accused Amazon of storing images of people passing by Ring cameras without their consent. The introduction of TAKE therefore comes as Ring faces continued questions over how its cameras process and protect personal data.

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