Under the consent order, people with active Grubhub accounts are to receive refundable credits.
The food delivery service Grubhub has agreed to pay an $800,000 civil penalty along with $2.7 million to consumers to settle a lawsuit brought in March by D.C. Attorney General Karl A. Racine, who alleged that the company charged customers hidden fees and used deceptive marketing in violation of District law.
The attorney general’s complaint said Grubhub engaged in a bait-and-switch scheme by representing to customers that they would pay only a “delivery fee,” then adding a “service fee” and “small order fee” to many orders at the checkout page after customers had gone through the trouble of selecting restaurants and menu items.
Grubhub spokeswoman Liza Dee said Friday that settling the lawsuit was in the best interest of the business. “Grubhub is committed to supporting all restaurants and diners, and is taking a number of steps to ensure price transparency,” Dee said in an email. The order requires Grubhub to take steps including disclosing when it presents search results that additional fees may apply at checkout, listing the fees as separate line items, and stopping the practice of charging menu prices higher than those available at the restaurants, unless it clearly discloses that the prices are higher.with active Grubhub accounts are to receive refundable credits, and if they are not used within 90 days, Grubhub must send checks for the amounts.
“We continue to spend millions of dollars in marketing annually to generate orders for our partners and boost support, visibility and order volume, and we are committed to evolving alongside the restaurant industry,” Grubhub’s post said.requiring Uber Eats to disclose clearly that food purchased on its app may be more expensive than the same item bought in the restaurant.
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