© Charles Rex Arbogast/AP Grubhub US Attorney General Carl A. Racines (D) claims the activities.Grocery delivery service Grub has agreed to pay $800,000 to consumers and $2.7 million in civil penalties from U.S. Attorney General Carl A. . State law.
The lawsuit alleges that Grub has hidden fees, lists more than 1,000 restaurants on its platforms that don't have contracts with companies, and that restaurants often overcharge items without disclosing that information to users.
The attorney general's complaint alleges that Grubhub engaged in a bait-and-switch scheme, telling customers they would only pay a "delivery fee" and adding a "handling fee" and a "small order fee" to multiple orders at checkout. On the customer page. It was difficult to choose restaurants and things;
DC accuses Grubb of taking advantage of consumers and restaurants"GrubHub used every trick in the book to trick its customers into paying more than they should have, and to make matters worse, they were doing it globally as people in the region struggled to make ends meet." - Racine. (d) He said in a press conference on Friday. “GrubHub's hidden fees and deceptive marketing tactics are designed to get more dollars for the company at the expense of DC residents, and we don't allow them.
In a consent order signed by a judge, Grubb denied the charges and any wrongdoing. "Defendants sign this Consent Order solely to dismiss this lawsuit," the order reads.
Grubhub spokeswoman Lisa D. He said on Friday that it was in the best interest of the company to settle the case. D.
GrubHub needs to take action, including disclosing in search results that surcharges may apply at check-out, listing charges on separate lines, and ending the practice of overcharging at restaurants if not clearly stated. These prices are high.
As part of the approval process, those with active GrubHub accounts must receive refund credits, and if they are not used within 90 days, GrubHub must send checks for the funds. Account holders are divided into three groups based on their application history, including frequency of applications. Members of the first group must receive at least $4.50 each, members of the second group at least $7, and members of the third group at least $10.
In the year In an updated post on its website on November 21, GrubHub said it had reached an agreement with Racine and Pennsylvania Attorney General Josh Shapiro (a Democrat who was recently elected governor of that state) "to provide greater transparency to our customers and thousands of restaurant partners.
"We continue to invest millions of dollars in marketing each year to increase our partners' orders, support, visibility and order volume, and we are committed to growing with the restaurant industry," Gruhb said.
Racine and Shapiro reached a settlement last year, requiring Uber Eats to clearly disclose that groceries purchased through the app may be more expensive than those purchased at a restaurant.
After Racine previously reached a $2.5 million settlement with Dr. Dash, he accused the company of using consumer tips from its suppliers to cover labor costs.
Chicago In 2021, they filed a lawsuit against GrubHub and DoorDash for "deceptive and unfair business practices that harm restaurants and mislead consumers." The case details many of the same practices cited in Racine's complaint, including misleading cartoons and fake "save the restaurant" campaigns during the outbreak.
In the year In 2020, a class action lawsuit was filed against Grubhub over transactions with "non-affiliated" restaurants, meaning establishments that have not signed an agreement to appear on the delivery service's app or website.
The class action lawsuit filed in federal court in Colorado alleges that Grubb listed non-partner restaurants on its platforms, then refused to accept online orders from those locations and diverted diners to partner restaurants. The second lawsuit, filed in federal court in Illinois, alleges that Grubb added more than 150,000 restaurants to the platform without its permission, causing confusion and inconvenience to customers.
These court cases are still ongoing.