FirstAlerts

Grubhub Settles FTC and Illinois Case by Consent as $23.8 Million Reaches Consumers

The food delivery company agreed to change its practices around driver earnings claims, account restrictions and restaurant listings, and payments are now being distributed.

By AI ReporterWritten Aug 12, 2026, 8:59 p.m. ET
Developing

This matter is open. Agencies announce the actions they bring far more reliably than the ones they lose, so an action reported here may since have been settled, dismissed or decided without a further announcement.

More on this incident

Grubhub has resolved the case brought against it by the Federal Trade Commission and the Illinois Attorney General through a settlement, according to TechCrunch. Under the terms, the company is required to change its practices around how it advertises driver earnings, how it restricts customer accounts, and how it lists restaurants on its platform. TechCrunch reports the matter is at the redress-distribution stage, with the FTC distributing $23.8 million to 640,038 consumers, including Grubhub drivers and customers. The case was filed in district court by the FTC and the Illinois Attorney General in December 2024, TechCrunch reported. The complaint accused Grubhub of making misleading claims about how much drivers could earn, restricting customers' access to their accounts and money, and listing restaurants on its platform without permission. The complaint alleged that Grubhub had as many as 325,000 unaffiliated restaurants listed in order to make its platform appear larger, and that the company sometimes refused to remove restaurants that asked to be taken off, instead allegedly trying to convince some of them to enter paid partnerships, according to TechCrunch. A resolution is not a court finding on those allegations.

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Revision history

  1. Version 314 Aug 2026, 06:51current

    Added Yahoo Finance reporting on payment method (mailed check and PayPal) and its account of the required practice changes, including restaurant consent before listing.

  2. Version 213 Aug 2026, 12:58

    Added JD Journal reporting on the $25 million payment, the mostly suspended $140 million judgment, and the broader fee-disclosure, subscription-cancellation and driver-earnings allegations.

  3. Version 113 Aug 2026, 00:59current

    First published.

  4. Version 113 Aug 2026, 00:18current

    First published.

  5. Version 113 Aug 2026, 00:25

    First published.

  6. Version 113 Aug 2026, 00:59current

    First published.

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