Grubhub begins distributing $23.8 million settlement to drivers and diners
The Federal Trade Commission is issuing $23.8 million in payments to more than 500,000 Grubhub drivers and customers after a lawsuit alleging deceptive practices.
Following a complaint lodged by the FTC and the Illinois Attorney General in late 2024, Grubhub is set to pay $23.8 million to more than 500,000 drivers and customers. Recipients will receive either mailed checks or PayPal payments. The lawsuit accused the company of overstating potential driver income, limiting user access to accounts and funds, and listing restaurants without permission, inflating the platform's size with up to 325,000 unaffiliated eateries.
As part of the agreement, Grubhub must revise its advertising, create a process for users to challenge account restrictions, and secure restaurant consent before listing them. The payout arrives shortly after a federal judge approved a nearly $25 million settlement covering roughly 60,000 California drivers. The case highlights ongoing regulatory scrutiny of major food-delivery firms.
Why it matters
Consumers and gig workers receive compensation while Grubhub faces new rules to curb deceptive practices.
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