The Federal Trade Commission is paying out $23.8 million to 640,038 individuals affected by some of Grubhub’s business practices, according to a Wednesday press release.
The payments stem from a $25 million settlement the FTC and the Illinois Attorney General reached with Grubhub in late 2024 regarding alleged “unlawful practices including deceiving drivers about how much money they would make delivering food, blocking diners from their accounts and funds, and unfairly and deceptively listing restaurants,” according to the press release.
It is unclear who will get money from the FTC. The announcement states the money will go to “drivers and diners” in its title, “drivers harmed by Grubhub” in its first paragraph and “affected consumers” in a later paragraph.
The FTC did not immediately respond to a request to clarify who is eligible to receive payouts in this case.
As part of the settlement, Grubhub was required to provide consumers with a way to dispute blocked accounts, change how it advertised driver pay and only list restaurants that had explicitly consented to be on the platform, court records show.
