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

The District of Columbia sued the company, accusing it of misleading customers by tacking on hidden fees. According to the press release, the company must pay a civil penalty of $800,000 to the District of Columbia.

The Attorney General of the District of Columbia filed a lawsuit against the online ordering service, accusing it of false advertising. The lawsuit claims that this practice is deceptive since it still takes a service fee for non-pickup orders made by customers of the company.

The company only stopped doing this a few weeks ago, but it is one of several questionable business practices. In the past, GrubHub was accused of listing restaurants on the platform without their permission to expand the service, and launched a series of microsites that looked like real restaurants. Many of the practices at issue have been discontinued according to the company.

Liza Dee says that the matter is now resolved and that it's in the best interest of the company. A number of steps are being taken to ensure price transparency.

Anyone who has paid a small order or service fee on an order placed via the GrubHub platform at a restaurant in DC between January 1 and the settlement date will get a credit in their account. Affected customers will be split into three groups based on how often they use the platform, with those in the first group getting at least $4.50, the next group getting at least $7, and the last group getting at least $10 If the account owner doesn't redeem the credit within 90 days, they have to send a check with the amount they're owed

The company was trying to get the company an extra buck.

The platform has to make a number of changes, including 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 in DC. When the prices for certain menu items are higher than what they are advertised at restaurants, the prices must be disclosed to the public. According to an updated post on its website, the company has agreed to provide additional clarity for diners and restaurant partners.

At a time when District residents were already struggling to make ends meet, GrubHub used every trick in the book to manipulate customers into paying more than they deserved.

There is a statement from a Grub Hub spokesman.