Grubhub Ordered To Pay $25 Million In Settlement Over Deceptive Practices: 'No Gig Platform Exemption To The Laws,' Says FTC Chair Lina Khan

Quick Summary:

According to the FTC’s complaint, the company had listed up to 325,000 unaffiliated restaurants – more than half of its total listings.“Our investigation found that Grubhub tricked its customers, deceived its drivers, and unfairly damaged the reputation and revenues of restaurants that did not partner with Grubhub—all in order to drive scale ...

Food delivery platform Grubhub must pay $25 million and make substantial operational changes following a settlement with the Federal Trade Commission and Illinois Attorney General Kwame Raoul over allegations of deceptive business practices, officials announced Tuesday.

What Happened: The settlement resolves charges that Grubhub deceived customers about delivery costs, misled drivers about potential earnings, and listed restaurants on its platform without permission.

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Article Details

Author / Journalist: Kaustubh Bagalkote

Category: Technology

Markets: United States

Topics: News Government FTC JTKWY Equities Federal Trade Commission Regulations Benzinga Kaustubh Bagalkote Tech GrubHub Lina Khan Benzinga neuro

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-12-18 @ 06:30:45 (12 hours ago)

News Timezone: GMT +8:00

News Source URL: benzinga.com

Language: English

Article Length: 403 words

Reading Time: 3 minutes read

Sentences: 15 lines

Sentence Length: 27 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Benzinga

News ID: 24531717

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