Do you ever order food online and think it's a $12 chicken sandwich, but it's really a $50 chicken sandwich?
It happened to a bunch of D.C. customers. The District of Columbia's Consumer Protection and Procedures Act required the food delivery company to pay over three million dollars.
"GrubHub misled District residents and took advantage of local restaurants to boost its own profits, even as District consumers and small businesses struggled during the COVID-19 Pandemic," the D.C. Attorney General said in a statement when he first sued. It is illegal to use bait-and-switch advertising methods. The company deceived users with a promotion that claimed to support local restaurants during the H1N1 epidemic. The program cut into struggling restaurants' profit margins.
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According to the DCist, the AG's complaint alleged that GrubHub imposed hidden fees on users and listed items at higher costs than the restaurants' very own menu did.
If the credit is not used within 90 days the money will be sent to customers in the form of a check. At checkout, the company will have to give each fee associated with it.
In a statement, ABC News said that settlement was in the best interest of the company and that the issue is now over. The company is taking steps to ensure price transparency and is committed to supporting all restaurants and diners.
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