FTC Sends More than $23.8 Million to Drivers and Diners Harmed by Grubhub’s Deceptive Advertising Claims and Other Unlawful Conduct
The FTC is distributing more than $23.8 million to Grubhub drivers and diners following a December 2024 settlement over allegations that the company misled drivers about earnings, locked diners out of their accounts, and listed restaurants on its platform without their consent.
Why this matters: Three separate groups got hurt here, and none of them had much power to push back. Drivers took gigs based on pay promises that apparently did not hold up. Diners lost access to their own accounts and money. Restaurants found themselves listed on a platform they never agreed to join. Grubhub sat in the middle collecting benefits from all three. When a platform controls access to income, customers, and business listings, the people on the outside of that deal deserve straight answers about the terms.
Who should care: Lawyers · Privacy officers · Compliance
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