Grubhub FTC Settlement Sends $23.8M to 640,038 Diners and Drivers
FTC payments totaling $23.8 million are going to 640,038 Grubhub diners and drivers after claims of deceptive earnings and restaurant listing practices.
Summary
On Wednesday, August 12, 2026, the Federal Trade Commission said it was distributing $23.8 million to 640,038 Grubhub drivers and customers, mostly by mailed check and partly through PayPal. The payments follow a December 2024 lawsuit from the FTC and Illinois attorney general alleging misleading driver earnings claims, restrictions blocking customers from accounts and funds, and restaurant listings published without consent.
The complaint said Grubhub listed as many as 325,000 unaffiliated restaurants to make its platform appear larger, sometimes refused removal requests, and encouraged some businesses to buy partnerships instead. The settlement requires accurate earnings advertising, a process for challenging account restrictions, and restaurant consent before listing. It arrives one month after a federal judge approved a separate settlement worth nearly $25 million involving approximately 60,000 California Grubhub drivers. DoorDash has also faced disputes over driver compensation, while Uber Eats has faced allegations involving customer charges and restaurant relationships.
Positives
- 640,038 Grubhub drivers and customers will share $23.8 million, mostly by mailed check and otherwise through PayPal.
- Grubhub must provide a process for customers to challenge restrictions blocking access to their accounts or funds.
- Restaurants must consent before Grubhub can list them on its platform.
- Grubhub must advertise potential driver earnings more accurately.
- Nearly 60,000 California Grubhub drivers are covered by a separate settlement worth almost $25 million.
Risks & concerns
- The FTC and Illinois attorney general alleged that Grubhub misled drivers about their potential earnings.
- Customers allegedly lost access to accounts and funds because of restrictions imposed by Grubhub.
- As many as 325,000 unaffiliated restaurants were allegedly listed to make Grubhub appear larger.
- Grubhub allegedly refused some restaurant removal requests and instead encouraged paid partnerships.
- DoorDash and Uber Eats have faced separate scrutiny involving driver pay, customer charges, and restaurant relationships.
