Grubhub to Distribute $23.8 Million to Drivers and Diners After FTC Settlement

The Federal Trade Commission announced it is sending more than $23.8 million to 640,038 Grubhub users—diners and delivery drivers—who were harmed by alleged deceptive practices. The payments, issued as mailed checks or PayPal deposits, resolve a lawsuit filed in December 2024 by the FTC and Illinois Attorney General Kwame Raoul. The agreement also obligates Grubhub to change its advertising, account-access, and restaurant-listing practices.

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The complaint accused Grubhub of:

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• Advertising driver earnings up to $40 per hour when the median pay was about $10 per hour and only 1 in 1,000 drivers earned that rate.

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• Adding “service” and “small-order” fees late in checkout, sometimes doubling the advertised price.

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• Listing up to 325,000 restaurants without consent and refusing removal requests.

Grubhub Distributes $23.8 Million to Deliverers and Customers Following FTC Settlement

• Blocking diners’ accounts with large gift-card balances, with 97 percent never unlocked.

Grubhub FTC Refunds: What RI Diners and Drivers Get

• $23.8 million in refunds to be distributed.

Grubhub FTC Refunds: What RI Diners and Drivers Get

• 640,038 eligible recipients; most will receive a check, a minority a PayPal deposit.

FTC Sends More than $23.8 Million to Drivers and Diners Harmed by Grubhub’s Deceptive Advertising Claims and Other Unlawful Conduct

• Settlement includes an immediate $25 million payment from Grubhub; a $140 million judgment remains, with $115 million suspended pending proof of the company’s financial condition.

Grubhub FTC Refunds: What RI Diners and Drivers Get

• Hidden fees could increase order costs by 100 percent or more.

Grubhub FTC Refunds: What RI Diners and Drivers Get

• Median driver compensation reported by the FTC was $51 per payment to recipients.

FTC Sends More than $23.8 Million to Drivers and Diners Harmed by Grubhub’s Deceptive Advertising Claims and Other Unlawful Conduct

The FTC said the settlement requires Grubhub to:

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• Advertise driver pay honestly and substantiate earnings claims.

FTC Forces $23.8M Grubhub Refund for Drivers

• Provide a clear mechanism for users to dispute blocked accounts.

FTC Sends More than $23.8 Million to Drivers and Diners Harmed by Grubhub’s Deceptive Advertising Claims and Other Unlawful Conduct

• Obtain explicit consent before listing any restaurant on its platform.

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The FTC and Attorney General Raoul argued that Grubhub’s practices were illegal and deceptive. A former Grubhub executive called the hidden-fee structure a “pricing shell game,” indicating internal awareness of the tactics.

FTC Forces $23.8M Grubhub Refund for Drivers

• Some outlets report the total distribution amount as $23.8 million, while others cite a $25 million cash component. Both figures appear in source material.

FTC Sends More than $23.8 Million to Drivers and Diners Harmed by Grubhub’s Deceptive Advertising Claims and Other Unlawful Conduct

• The judgment is consistently described as $140 million, with the suspended portion varying in wording.

Grubhub FTC Refunds: What RI Diners and Drivers Get

Recipients must cash their checks by August 12, 2026; otherwise the payment is forfeited. Grubhub must implement the operational reforms outlined in the settlement and will be monitored by the FTC for compliance.

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