The Federal Trade Commission has begun distributing $23.8 million to more than 640,000 Grubhub drivers and customers, following allegations that the food delivery company misled workers about earnings and engaged in other deceptive practices.
The FTC announced on Wednesday that 640,038 consumers will receive payments, with most getting checks in the mail and some via PayPal. The payouts stem from a lawsuit filed by the FTC and the Illinois Attorney General in December 2024.
The complaint accused Grubhub of making misleading claims about driver earnings, restricting customers' access to their accounts and funds, and listing restaurants without permission. It also alleged that as many as 325,000 restaurants on the platform were not affiliated with Grubhub, used to make the platform appear larger, and that Grubhub sometimes refused to remove restaurants that asked to be taken down.
As part of the settlement, Grubhub must be more accurate when advertising potential driver earnings, give customers a way to challenge account restrictions, and obtain a restaurant's consent before listing it.