Grubhub Faces $25 Million Settlement with FTC

The Federal Trade Commission (FTC) has announced a $25 million settlement with Just Eat Takeaway.com NV's subsidiary, Grubhub, over allegations of 'unlawful practices' targeting workers, restaurants, and diners.

Deceptive Practices Exposed

The FTC's statement detailed several deceptive tactics employed by Grubhub, including misleading employees about their salaries, misrepresenting earnings and service costs to food providers, and unconsented inclusion of some establishments on the platform. The agency stressed the importance of transparency in Grubhub's operations and job advertisements.

FTC Chair Lina Khan's Statement

FTC Chair Lina Khan emphasized the harm caused by Grubhub's practices, stating that the company "tricked its customers, deceived its drivers, and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub—all in order to drive scale and accelerate growth." Khan highlighted the significance of the settlement in holding Grubhub accountable and securing compensation for those affected.