FTC Takes Action Against Grubhub

Regulatory action has been taken against Grubhub by the Federal Trade Commission (FTC) and Illinois attorney general (AG). FTC and Illinois AG accused Grubhub of unlawful practices including fake restaurant affiliations, deceptive delivery cost practices and driver earnings misrepresentation, and the company will pay $25 million to settle the charges. Mr. DiResta notes that Grubhub reportedly received a warning letter in 2021 but did not change its practices, which he highlights as a prime example of how essential it is for businesses to "be very aware" of regulatory notices from federal enforcement authorities.