Grubhub ordered to pay $3.5 million for allegedly charging customers hidden fees

Grubhub has been ordered to pay $3.5 million to Washington D.C. after the District filed a lawsuit against the company for allegedly deceiving customers and charging them hidden fees.

Washington D.C. Attorney General Karl Racine said that the company regularly charged customers “hidden fees” and used “deceptive marketing techniques to increase profits.”

$2.7 million of the settlement “will be paid back to affected customers,” Racine said, adding: “Those with active Grubhub accounts will receive a refundable credit and if the credit is not used within 90 days the money will be sent to customers in the form of a check.”

D.C. originally sued Grubhub in March for allegedly violating the District’s Consumer Protection and Procedures Act.

“Grubhub used every trick in the book to manipulate customers into paying far more than they owed, and even worse, they did so at the height of a global pandemic when District residents were already struggling to make ends meet,” Racine said.

“Grubhub’s hidden fees and misleading marketing tactics were designed to get the company an extra buck at the expense of DC residents – but we’re not letting them get away with it. No company, big or small, can take advantage of DC residents without consequence.”

Grubhub has since responded to the settlement, promising more transparency when it comes to making purchases through the food delivery service.