Telecom News Hubb
Advertisement
  • Home
  • News
  • Telecom
  • Contact us
No Result
View All Result
  • Home
  • News
  • Telecom
  • Contact us
No Result
View All Result
Telecom News Hubb
No Result
View All Result
Home News

Grubhub must pay DC $3.5 million over claims it charged customers hidden fees

admin by admin
December 31, 2022
in News


Grubhub has been ordered to pay $3.5 million to settle a lawsuit from the District of Columbia that claims the company misled customers by tacking on hidden fees to their orders. According to a press release, Grubhub must pay $800,000 to DC as a civil penalty, while the remaining $2.7 million “will be paid back to affected customers.”

In March, DC Attorney General Karl Racine filed a lawsuit against Grubhub, accusing it of falsely promising “free” online orders to customers, as well as “unlimited free delivery” for those who subscribe to Grubhub Plus. The lawsuit alleges this practice is “deceptive” since Grubhub still takes a service fee for non-pickup orders made by Grubhub Plus customers, and charges both delivery and service fees for standard orders as well.

It also cites several other questionable business practices, such as the way Grubhub bundled service fees in a single line with sales taxes on the checkout page, something the company only stopped doing recently. Grubhub was previously accused of listing restaurants on the platform without their permission to expand the service, and launched a series of microsites resembling restaurants’ real sites in order to route orders through Grubhub. At the time of the suit’s filing, Grubhub refuted the claims and said “many of the practices at issue have been discontinued.”

“Settling this lawsuit is in the best interest of our business and the matter is now resolved,” Grubhub spokesperson Liza Dee says in a statement to The Verge. “Grubhub is committed to supporting all restaurants and diners, and is taking a number of steps to ensure price transparency.”

As part of the settlement, Grubhub’s required to “place a refundable credit” in the accounts of affected customers, which applies to anyone who has “paid a small order or service fee on an order placed via the Grubhub Platform” at a restaurant located in DC anytime between January 1st, 2016 to December 31st, 2022. Affected customers will get split into three groups depending on how often they used the platform, with those in the first group getting at least $4.50, the next getting at least $7, and the people in the final group getting at least $10. If the account owner doesn’t redeem the credit within 90 days of receipt, Grubhub’s required to send them a check with the amount they’re owed.

“Grubhub’s hidden fees and misleading marketing tactics were designed to get the company an extra buck”

In addition to the payment, the platform’s required to make a number of changes, such as prominently displaying any additional fees to customers at checkout, listing each fee on separate lines, and shutting down or transferring ownership of the microsites it made for restaurants located in DC. Grubhub must also stop telling Grubhub Plus members that they can receive “free delivery,” and now has to disclose when the prices for certain menu items are higher than what they’re advertised at restaurants themselves. In an updated post on its website, Grubhub says it has agreed to “provide additional clarity for our diners and thousands of restaurant partners.”

“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 says in a statement. “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.”

Update, 2:06PM ET: Updated to add a statement from a Grubhub spokesperson.





Source link

Previous Post

Mom Shares Pro-Trump Book Grandma Gave Grandchild

Next Post

Digital Transformation M&A: Grid Dynamics Acquires Mutual Mobile

Next Post

Digital Transformation M&A: Grid Dynamics Acquires Mutual Mobile

Recommended

How Wi-Fi 7 addresses Wi-Fi 6 pitfalls

November 20, 2022

How to file and pay your 2022 taxes online

January 24, 2023

5 Channel Partner & MSP Market News Updates: 20 January 2023

January 21, 2023

Delta Customer Mocks Southwest and Sparks Debate in TikTok

January 2, 2023

Vonage to pay $100M to settle FTC “dark patterns” lawsuit

November 6, 2022

Don't miss it

News

Amazon Fresh is more than quadrupling how much you’ll need to pay to get free grocery delivery

January 27, 2023
Telecom

Domino’s Customer Praises Worker For Replacing Dropped Pizza

January 26, 2023
News

Shell Energy is the most complained about broadband firm again

January 26, 2023
News

FCC targets mortgage scam robocalls

January 26, 2023
News

Software Engineering M&A: Harness Acquires Propelo

January 26, 2023
News

Ford is helping dealerships make mobile service an option for more customers

January 26, 2023

Telecomm-white

© 2022 Telecomm News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Telecom
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • News
  • Telecom
  • Contact us

© 2022 Telecomm News Hubb All rights reserved.