The FTC is distributing $23.8 million among Grubhub payout recipients
The U.S. Federal Trade Commission (FTC) has begun distributing $23.8 million among 640,038 recipients of payments related to the food delivery service Grubhub. Most of them will receive checks by mail, while some will receive the funds via PayPal, according to TechCrunch.
The payments stem from a lawsuit filed by the FTC and the Illinois Attorney General against Grubhub in December 2024. In the complaint, the company was accused, among other things, of misleading delivery drivers about their potential earnings, restricting customers’ access to their accounts and funds, and listing restaurants on the platform without their consent.
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According to the complaint, there could have been up to 325,000 restaurants on the platform that were not affiliated with Grubhub. The FTC claimed that such listings could have created the impression of a larger service. The regulator also stated that the company sometimes failed to remove restaurants at their request and instead tried to persuade individual establishments to enter into paid partnerships.
Under the terms of the settlement, Grubhub must more accurately advertise potential earnings for delivery drivers, provide customers with a mechanism to appeal restrictions that prevent them from accessing their accounts or funds, and obtain consent from restaurants before adding them to the platform. A month before the FTC’s announcement, a federal judge finalized a separate settlement of nearly $25 million involving approximately 60,000 Grubhub delivery drivers in California.
