AGs Focus On Transparent Fees

In late November, the Pennsylvania AG's office announced a settlement with Grubhub. In its action, the AG alleged among other claims that Grubhub's platform did not clearly disclose to consumers that they were sometimes charged higher prices for items ordered through the platform compared to ordering from the restaurant directly. Attorney General Shapiro settled for $125,000 in food bank donations and changes to its practices.

To address the AG's disclosure concerns, Grubhub is required to make additional clear and conspicuous app and website disclosures informing consumers about the potential for higher prices with their service. The AG further alleged that Grubhub concealed the fact that it used third party websites to promote certain restaurants using their own routing numbers as contact information, which may have misled customers into believing they were viewing the restaurant's own contact information. To resolve this allegation, the settlement requires