The delivery platform is accused of charging junk fees and engaging in false advertising about compensation.

Summary

Grubhub will pay $25 million to settle charges from the FTC and Illinois AG alleging it misled diners about meal costs, drivers about earnings, and falsely advertised non-partnered restaurants.

The agencies accused Grubhub of deceptive practices, such as hidden service fees that inflated prices, overstating driver pay potential, and listing up to 325,000 unaffiliated restaurants.

Grubhub will also implement changes to disclose full delivery costs, accurately advertise pay, and list only consenting restaurants.

Grubhub denied the allegations but agreed to settle, with penalties reduced from $140 million due to its financial position.