WASHINGTON — Washington, D.C. Attorney General Karl Racine has filed a lawsuit against the online meal delivery service Grubhub, saying that Grubhub misled customers with hidden fees and deceptive advertising.
In the lawsuit, Racine claims that in many cases Grubhub had no contractual relationship with the restaurants it listed on its platform, and in fact listed them without the restaurants’ consent.
We all deserve to make informed decisions about where and how we spend our dollars—and that’s what we’re fighting for in our new lawsuit against Grubhub.
— AG Karl A. Racine (@AGKarlRacine) March 21, 2022
Here are just some of the deceptive practices Grubhub uses, taking advantage of DC residents and restaurants.⬇️ pic.twitter.com/87oICD4NXl
“Grubhub misled District residents and took advantage of local restaurants to boost its own profits, even as District consumers and small businesses struggled during the COVID-19 pandemic,” Racine said in a statement. “Grubhub charged hidden fees and used bait-and-switch advertising tactics – which are illegal.”
Grubhub Lawsuit by National Content Desk on Scribd
In an emailed statement, Grubhub responded: “We work hard to support DC restaurants and diners, and we continually review and enhance our operations to better serve them and meet their expectations. During the past year, we’ve sought to engage in a constructive dialogue with the DC Attorney General’s office to help them understand our business and see if there were any areas for improvement. We are disappointed they have moved forward with this lawsuit because our practices have always complied with DC law, and in any event, many of the practices at issue have been discontinued.”
One discontinued practice mentioned in the suit is the “Supper for Support” program. In March and April 2020, the “Supper for Support” program was designed to help restaurants struggling because of the COVID-19 pandemic by offering discounts to encourage users to order and running advertisements. Racine claims Grubhub did not fully cover the cost of the discounts, instead passing those costs on to already-struggling local businesses. The lawsuit also claims Grubhub continued to require the restaurants to pay the company its full commission, which is based on non-discounted prices, on the discounted orders.
A Grubhub spokesperson said via email that it had stopped several of the policies Racine had mentioned in his suit, including the “Supper for Support” promotion, as well as listing restaurants on its website without a contracted relationship. “We will aggressively defend our business in court and look forward to continuing to serve DC restaurants and diners.”
Grubhub is owned by Just Eat Takeaway.com, and features more than 300,000 restaurant partners in over 4,000 U.S. cities, according to the company’s website. Grubhub partners with nearly 1,500 restaurants in Washington alone, WUSA reported.
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