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ARTICLE · 03 FEBRUARY 2025

FTC And Illinois Attorney General Settle With Grubhub For Deceptive Practices

Global Advertising Lawyers Alliance (GALA)
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The Federal Trade Commission (FTC) and the Illinois attorney general announced a settlement with Grubhub Inc. to resolve allegations that the company engaged...

United StatesConsumer Protection
Leonard Gordon (Venable LLP)
Leonard Gordon (Venable LLP)
Ellis C. McKennie, III (Venable LLP)
Ellis C. McKennie, III (Venable LLP)
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The Federal Trade Commission (FTC) and the Illinois attorney general announced a settlement with Grubhub Inc. to resolve allegations that the company engaged in an array of unfair and deceptive practices that violated Section 5 of the FTC Act, the Restore Online Shoppers' Confidence Act (ROSCA), the FTC's new Impersonation Rule, and Illinois state consumer protection laws. The FTC announced the case as Chair Lina Khan's tenure at the helm of the FTC comes to an end, and the case highlights many of the approaches Khan has pushed for during her reign.

The complaint alleged that Grubhub, an online food ordering and delivery platform, engaged in practices that harmed diners, delivery workers, and restaurant owners. Grubhub reportedly deceived diners by advertising low or no delivery fees but then added hefty charges at checkout. Even members of the company's subscription program, Grubhub+, who paid $9.99 per month for "unlimited free delivery," were charged these

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