Grubhub's $24M FTC settlement is finally reaching diners and drivers | TechCrunch

The Federal Trade Commission has officially commenced the distribution of nearly twenty-four million dollars to more than six hundred and forty thousand Grubhub customers and delivery couriers.

This massive disbursement resolves a major legal complaint initiated by federal regulators alongside the Illinois Attorney General, which accused the prominent food delivery platform of utilizing multiple deceptive business strategies. Among the primary grievances, authorities alleged that the delivery giant regularly misled independent gig workers regarding their potential hourly earnings and arbitrarily blocked customers from accessing their profiles and remaining funds. Additionally, the platform allegedly padded its restaurant listings by including hundreds of thousands of unaffiliated local dining establishments without their knowledge or consent, a tactic designed to make the platform's reach appear much larger than it actually was.

To resolve these severe allegations, the regulatory settlement mandates that Grubhub overhaul several of its core operational practices. The company must now provide transparent and accurate driver earnings advertisements, establish a clear appeal process for users facing account locks, and secure formal partnership agreements before listing any restaurant on its mobile application. This substantial payout arrives shortly after a separate multi-million dollar class-action resolution involving tens of thousands of delivery drivers in California. These legal developments emphasize the continuing regulatory pressure on the broader gig economy, as rival food delivery platforms continue to navigate similar federal and state lawsuits concerning labor compensation and partner merchant relations.