Grubhub to Pay $3.5M to Resolve D.C. AG’s Deception Claims

Grubhub will pay $3.5 million to settle claims that it charged customers “hidden fees” and used “deceptive marketing” in violation of local consumer protection laws, Washington, D.C., Attorney General Karl Racine (D) announced in a settlement Friday. Grubhub listed menu items with prices higher than those on certain restaurants’ own menus, Racine’s office alleged in claims originally filed in March. Racine said the company deceived consumers about their ability to order online for free and deceptively advertised subscribers’ ability to get free delivery. The settlement requires several changes to Grubhub’s business practices: The company must prominently display all checkout fees for consumers, display line items for each fee and stop combining taxes and fees into one item at checkout. Nearly $3 million will go to affected customers and the district will receive an $800,000 civil penalty. The company didn’t comment.