Grubhub must pay DC $3.5 million over claims it charged customers hidden fees
Grubhub has been ordered to pay $3.5 million to settle a lawsuit from the District of Columbia that claims the company misled customers by tacking on hidden fees to their orders. According to a press release, Grubhub must pay $800,000 to DC as a civil penalty, while the remaining $2.7 million “will be paid back to affected customers.”
In March, DC Attorney General Karl Racine filed a lawsuit against Grubhub, accusing it of falsely promising “free” online orders to customers, as well as “unlimited free delivery” for those who subscribe to Grubhub Plus. The lawsuit alleges this practice is “deceptive” since Grubhub still takes a service fee for non-pickup orders made by Grubhub Plus customers, and charges both delivery and service fees for...