Food delivery service Grubhub has begun distributing a $23.8 million settlement to over 640,000 drivers and consumers following a legal action brought by the Federal Trade Commission (FTC). The payouts resolve allegations that the company engaged in deceptive practices, including misleading workers about potential earnings and listing unauthorized restaurants on its platform.
The settlement stems from a late 2024 lawsuit filed by the FTC and the Illinois attorney general, which accused Grubhub of unfair operations such as restricting user account access and fabricating platform scale through unapproved restaurant listings. Under the terms of the agreement, Grubhub is now required to reform its advertising practices, secure proper restaurant consent, and provide clearer pathways for disputed account restrictions.
- Grubhub is distributing $23.8M to over 640,000 affected users and drivers
- The FTC settlement resolves allegations of deceptive earnings and business practices
- The platform was cited for listing hundreds of thousands of unapproved restaurants
- The company must enforce stricter transparency and operational compliance
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