District of Columbia v. Grubhub

$3.5 million in fines


Grubhub fined for promises of "free" orders via subscription, unauthorised restaurant listings, and hidden fees.

Our analysis

In March, DC Attorney General Karl Racine filed a lawsuit against Grubhub. Grubhub was accused of falsely promising "free" online orders to customers and "unlimited free delivery" for Grubhub Plus subscribers. The lawsuit alleges that Grubhub still charged service fees for non-pickup orders from Grubhub Plus customers and both delivery and service fees for standard orders. Grubhub was also criticized for bundling service fees with sales taxes and listing restaurants on the platform without their permission. Grubhub launched microsites resembling real restaurant sites to route orders through their platform. Grubhub refuted the claims but stated that some practices had been discontinued. Grubhub settled the lawsuit and placed refundable credits in the accounts of affected customers.


Under the settlement, affected customers will receive $2.7 million in refunds, distributed as refundable credits to Grubhub accounts, with unclaimed funds being issued as checks after 90 days; additionally, a civil penalty of $800,000 will be collected by the District; Grubhub is mandated to transparently display fees and price differences at checkout.


District of Columbia and Grubhub Holdings

Case number

Civil Action No. 2022 CA 001199 B

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