(NEXSTAR) – The Federal Trade Commission (FTC) announced Wednesday it will be sending out hundreds of thousands of payments to settle a lawsuit alleging that Grubhub tricked customers with hidden fees and deceived drivers.
The FTC will be sending 640,038 checks or PayPal deposits to affected app users, amounting to more than $23.8 million.
Why was the lawsuit filed?
The FTC and Illinois Attorney General accused the company in a December 2024 court filing of using illegal and deceptive practices to grow the Chicago-based company.
Grubhub, which had long advertised a single, low-cost fee, allegedly tacked on junk fees that would show up on a customer’s order as “service” or “small order” fees that could drive up the price of food to more than double the initial cost…