Do you ever place an internet food order only to discover that what you expected to be a $12 chicken sandwich is instead more like a $50 chicken sandwich?
A bunch of Grubhub customers in the Washington, D.C., area experienced exactly like that. The food delivery service was found to have violated the District of Columbia’s Consumer Protection and Procedures Act, for which it was compelled to pay a staggering $3.5 million as they charged hidden fees from 2016 to 2022.
D.C. When he originally sued Grubhub in March, Attorney General Karl Racine issued a statement:
“Grubhub misled District residents and took advantage of local restaurants to boost its own profits, even as District consumers and small businesses struggled during the COVID-19 pandemic. Grubhub charged hidden fees and used bait-and-switch advertising tactics — which are illegal. On top of that, the company deceived users with a promotion that claimed to support local restaurants during the heart of the pandemic. But in reality, this program cut into struggling restaurants’ profit margins while padding Grubhub’s bottom line.”
The AG’s complaint alleged that Grubhub imposed hidden fees on users and listed items at higher costs than the restaurants’ very own menus did. Customers in the region will receive $2.7 million of the settlement directly, which Racine said will be given in the form of “a refundable credit, and if the credit is not used within 90 days the money will be sent to customers in the form of a check.” The business will also have to disclose all fees related to its service at checkout.
People who ordered food delivery between January 1, 2016, and December 31, 2022, will get the benefit so long as they live in the area surrounding the United States Capitol, as customers in Washington, D.C., who ordered food delivery from GrubHub will now receive a refund credit through their GrubHub account.
Depending on how many times a person ordered delivery over the years, the refund will range between $4.50 and $10. As customers will be paid in three waves, and their cut will be credited to their accounts, and it will be sent to them as a check if it remains unused within 90 days.
Racine wrote, “Grubhub’s hidden fees and misleading marketing tactics were designed to get the company an extra buck at the expense of D.C. residents, but we’re not letting them get away with it.”
GrubHub accepted the payout even though they insisted they had done nothing wrong. Liza Dee, Grubhub spokesperson said:
“Settling this lawsuit is in the best interest of our business, and the matter is now resolved. Grubhub is committed to supporting all restaurants and diners and is taking a number of steps to ensure price transparency.”
Watch the video below for more details: