Grubhub customers in Washington DC are set to receive $2.7 million in refunds
Grubhub customers in Washington DC are expected to receive $2.7 million in refunds after the company admits it charges hidden fees and uses deceptive marketing to boost profits
- Grubhub agreed to pay customers in Washington DC a $3.5 million lawsuit after it filed hidden charges from 2016 to 2022
- The company is expected to spend $2.7 million to customers and $800,000 to DC
- DC Attorney General Karl Racine filed the lawsuit, accusing the company of providing false services, such as B. Free shipping for Grub Hub Plus subscribers
- Grubhub has since issued a statement promising transparency to customers
Grubhub will issue $2.7 million in refunds to Washington DC customers after the company launched hidden fees to boost profits.
DC Attorney General Karl Racine filed a lawsuit against the grocery delivery company earlier this year, alleging that it offers bogus services like “free delivery” for Grub Hub Plus subscribers.
The lawsuit alleged that users would still have to pay a service and delivery fee. It was also argued that the company misled customers by listing restaurant items at a higher price than on the original menu.
“Grubhub used every trick in the book to manipulate customers into paying far more than they owed, and worse, they did so at the height of a global pandemic when district residents were already struggling over the making ends meet,” Racine wrote in a statement.
Grubhub will also have to pay $800,000 to settle the lawsuit with DC. A total loss of $3.5 million.
Grubhub agreed to pay a $3.5 million lawsuit to customers and Washington DC after it filed hidden charges from 2016 to 2022
DC Attorney General Karl Racine filed a lawsuit against the grocery delivery company earlier this year, alleging they were offering bogus services like “free delivery.”
The food delivery company must now pay impacted customers by crediting their Grubhub accounts between January 1, 2016 and December 31, 2022.
Customers will be paid in three waves and can expect to see their accounts credited between $4.50 and $10.
The amount must be cashed within 90 days or the company must send customers a check, the news outlet said.
“Grubhub’s hidden fees and deceptive marketing tactics should earn the company an extra dollar at the expense of DC residents, but we’re not letting them get away with it,” Racine wrote.
Grubhub must also notify customers of any additional fees.
The lawsuit alleged that Grubhub denied any wrongdoing, but the company agreed to pay the severance payment.
“Resolving this dispute is in the best interest of our company and the matter is now resolved,” Liza Dee, spokeswoman for Grubhub, told The Verge.
“Grubhub is committed to supporting all restaurants and diners and is taking a number of steps to ensure price transparency.”
The company also released a statement on its website promoting its new transparency policy and the terms of the settlement.
Grubhub has since issued a statement promising transparency to customers
Grubhub was also accused of “cybersquatting” in 2019 by setting up 30,000 fake websites disguised as linked restaurant homepages in its app to inflate prices and charge crippling commission fees.
According to The New York Post, since 2010 the company has reportedly purchased 34,000 URLs with names similar to restaurants’ existing pages and created copycat pages that even use the companies’ logos.
While the fake sites usually have the same menu as the real ones, the prices were higher.
At the time, Grubhub denied any wrongdoing.
https://www.dailymail.co.uk/news/article-11589369/Grubhub-customers-Washington-D-C-set-2-7million-refunds.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Grubhub customers in Washington DC are set to receive $2.7 million in refunds