Ever order food online and realize what you thought was a $12 chicken sandwich is actually closer to a $50 chicken sandwich?
This is exactly what has happened to a number of Grubhub customers from the DC area. The food delivery company has been ordered to pay a whopping $3.5 million after it was found to be violating the District of Columbia Consumer Protection and Procedure Act.
“Grubhub has misled district residents and leveraged local restaurants to boost its own profits, even as the district’s consumers and small businesses struggled during the COVID-19 pandemic,” DC Attorney General Karl Racine said in a statement when he first sued Grubhub in March. “Grubhub has been charging hidden fees and using promotional tactics to bait and switch – which are illegal. Additionally, the company fooled users with a promotion claiming to support local restaurants at the heart of the pandemic. But in reality, this program has reduced the profit margins of the struggling restaurants while improving Grubhub’s bottom line.”
The District of Columbia is suing Grubhub for hidden fees, misleading advertising and more
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The AG’s complaint alleged that Grubhub imposed hidden fees on users and listed items at a higher cost than the restaurants’ own menus, the DCist reported.
Customers in the region will receive a total of $2.7 million of the settlement amount directly, which Racine said ABC News is granted as “a refundable credit and if the credit is not used within 90 days, the money will be sent to customers in the form of a check.” The Company must also disclose any fee associated with its service at checkout.
Grubhub did not immediately respond to Mashable’s request for comment, but said in a statement to ABC News that the settlement was “in the best interests of our company” and that the issue is now “resolved.” The company added that it is “committed to supporting all restaurants and restaurants and is taking a number of steps to ensure price transparency.”
https://mashable.com/article/grubhub-lost-dc-settlement Grubhub has to pay up to D.C.-area customers