What's happened
Grubhub has agreed to a $24.8 million settlement with the FTC over allegations of misleading pricing and deceptive practices. The settlement mandates changes to its business operations, including transparency in fees and removal of unaffiliated restaurants from its platform. Grubhub denies wrongdoing but aims to move forward.
Why it matters
What the papers say
According to Axios, Grubhub's settlement requires the company to stop adding surprise fees and improve transparency about delivery costs. The FTC's chairperson, Lina M. Khan, stated that Grubhub's practices unfairly harmed both consumers and restaurants. The Independent highlights that Grubhub's misleading advertising about driver earnings and unauthorized restaurant listings were central to the investigation. AP News notes that Grubhub's denial of wrongdoing reflects its commitment to transparency, despite the settlement. TechCrunch emphasizes the financial implications of the settlement, which could lead to significant operational changes for Grubhub.
How we got here
The FTC's investigation into Grubhub was prompted by numerous consumer complaints regarding deceptive pricing practices and misleading claims about driver earnings. The settlement is part of a broader effort to address junk fees in the delivery service industry.
Common question
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What Led to Grubhub's $24.8 Million Settlement with the FTC?
Grubhub's recent $24.8 million settlement with the Federal Trade Commission (FTC) has raised many questions about the implications for consumers and the company's future practices. This settlement addresses serious allegations of misleading pricing and deceptive practices that have affected both customers and restaurants. Below, we explore the key questions surrounding this significant development.
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Grubhub Inc. is an American online and mobile prepared food ordering and delivery platform that connects diners with local restaurants. The company is based in Chicago, Illinois and was founded in 2004.
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