Food delivery platform Grubhub has agreed to pay a $25 million settlement for adding fees to customers' bills, even those with "free delivery" options, in the state of Illinois.
According to the Federal Trade Commission and Illinois Attorney General Kwame Raoul, Grubhub used deceptive tactics to illegally charge customers, mislead drivers and damage the reputations of restaurants, according to WTVO.
The investigation determined that the company "deliberately and systematically cheated its customers, deceived its drivers, and undermined restaurants that did not partner with Grubhub," said FTC chairperson Lena Khan.
According to the complaint, Grubhub would trick customers by advertising free delivery fees or ones as low as $2.49. However, the company added service fees over the years to the tune of hundreds of millions of dollars.
"This settlement is the culmination of a multi-year investigation into deceptive and illegal business practices perpetrated by Grubhub ... that has resulted in relief for Illinois consumers," Raoul said. "I remain committed to holding businesses like Grubhub accountable for their deceptive business practices."
The probe found that Grubhub not only damaged customers but restaurants and drivers as well. The company listed restaurants as clients without their consent, often providing inaccurate hours and menus that angered the public.
Grubhub also hired delivery drivers based on misleading information, claiming they could make between $26 to $40 per hour, although few ever realized those lofty expectations.
