More than 640,000 Grubhub drivers and customers are set to receive a share of $23.8 million following allegations that the food delivery company engaged in deceptive business practices.
The Federal Trade Commission (FTC) said the money will be distributed to 640,038 consumers. Most recipients will receive checks by mail, while some payments will be made through PayPal.
The payouts stem from a lawsuit filed by the FTC and the Illinois Attorney General in December 2024. Grubhub was accused of misleading drivers about potential earnings, restricting customers’ access to accounts and funds, and listing restaurants on its platform without their permission.
According to the allegations, Grubhub had as many as 325,000 restaurants listed on its platform that were not affiliated with the company, making its service appear larger.
Under the settlement, Grubhub must provide more accurate information about potential driver earnings, offer customers a way to challenge account restrictions, and obtain restaurant consent before listing them on its platform.
The announcement comes just a month after a federal judge approved another settlement worth nearly $25 million involving about 60,000 Grubhub delivery drivers in California.
