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

The U.S. Federal Trade Commission (FTC) announced the launch of a compensation program for Grubhub, which agreed to pay $23.8 million to resolve disputes with consumers. This settlement came after the FTC filed a lawsuit against Grubhub in December 2024, along with the Illinois Attorney General, accusing it of misleading drivers about income potential, restricting customer account access, and adding restaurants to the platform without consent. According to the agreement, Grubhub must pay recipients including 640,038 consumers and drivers, with most payments made by check and the rest through PayPal. As part of the settlement, Grubhub promised to provide more accurate information about drivers’ income, establish a complaint mechanism to handle account restriction issues, and obtain consent before adding restaurants to the platform. This case follows only one month after Grubhub’s previous settlement with approximately 60,000 drivers in California, worth nearly $25 million, and the company had already faced challenges from DoorDash and Uber…