Well over half a million Grubhub drivers and customers are set to receive a share of $23.8 million following allegations that the food delivery company misled workers about their potential earnings and engaged in other deceptive practices.
The Federal Trade Commission (FTC) announced on Wednesday that it’s distributing the money to 640,038 consumers, with most recipients receiving a check in the mail. Some will receive their payments through PayPal.
The payouts stem from a lawsuit the FTC and Illinois Attorney General filed against Grubhub in December 2024. The complaint accused the company of a range of unlawful practices, including making misleading claims about how much drivers could earn, restricting customers’ access to their accounts and money, and listing restaurants on its platform without their permission.
Another allegation involved Grubhub’s restaurant listings. According to the complaint, the company had as many as 325,000 restaurants on its platform that were not affiliated with Grubhub. The FTC alleged that Grubhub used those listings to make its platform appear larger.
The complaint also alleged that Grubhub sometimes refused to remove restaurants after they asked to be taken off the platform. Instead, the company allegedly tried to convince some of those businesses to enter into paid partnerships.
The settlement required Grubhub to change how it operates in several areas. For instance, the company must be more accurate when advertising potential driver earnings, give customers a way to challenge account restrictions that leave them unable to access their accounts or funds, and obtain a restaurant’s consent before listing it on the platform.
Today’s announcement puts renewed attention on Grubhub’s treatment of its drivers and diners and the company’s broader business practices. Notably, it comes just one month after a federal judge granted final approval of another settlement worth nearly $25 million and involving approximately 60,000 Grubhub delivery drivers in California.
Grubhub also isn’t the only delivery company to face scrutiny. In the past, DoorDash has faced criticism and legal challenges over driver compensation, while Uber Eats has dealt with allegations involving customer charges and its relationships with restaurants.
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