Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Business News

Grubhub settles with Attorney General for deceptive practices

Grubhub
Photo
/
Adobe Stock
Grubhub was found misleading customers and charging higher prices than restaurants.

HARRISBURG, Pa — Grubhub may have gotten too grubby with Pennsylvanian customers for the Attorney General’s taste.

  • An investigation by the state Attorney General's office found that Grubhub, a food delivery app, used deceptive practices
  • The company misled customers and charged higher prices than restaurants
  • Grubhub will now disclose that it charges higher prices on its app and will donate $150,000 to food banks in Pennsylvania

An investigation found they were charging customers higher prices than the restaurant, according to a news release.

It also found Grubhub used microsites, which are separate websites that had the restaurant’s menu. This is in addition to undisclosed partnerships with websites like Yelp and MenuPages.com.

This misled customers who thought they were shopping around.

In addition, a Grubhub routing phone number made it seem like customers were directly ordering from a restaurant. Instead, they were unknowingly ordering from Grubhub, paying higher prices along with fees.

As part of the settlement, Grubhub has to disclose its prices may be higher than in the restaurant.

“Consumers deserve transparency so they can make informed decisions.”
Attorney General Josh Shapiro

“Consumers deserve transparency so they can make informed decisions,” said Attorney General Josh Shapiro.

They will have to pay, but not to the people they ripped off. Instead, they will donate $125,000 to various food banks throughout the state.