Over $3.5 Million Being Paid by Grubhub for Overcharging

Photo courtesy of WhatsNext

BARNSTABLE – It was recently announced by Attorney General Andrea Joy Gampbell that a settlement with Grubhub Holdings Inc. and Grubhub Inc. for illegally overcharging fees to Massachusetts restaurants during the COVID-19 public health emergency.

The settlement resolves a 2021 lawsuit brought on by the Attorney General’s office as the company was in violation of the statutory fee cap that was in place.

Under the settlement terms, Grubhub will pay a combined total of over $3.5 million to impacted restaurants along with a $125,000 payment to the Commonwealth.

“Grubhub unlawfully overcharged and took advantage of restaurants during a public health emergency that devastated much of this industry,” said Attorney General Campbell.

“I am proud of my office’s dedicated work in securing meaningful financial relief for impacted businesses and we will continue to protect both consumers and businesses from such unfair and illegal practices,” Campbell said.

Grubhub is a delivery service platform that contracts with restaurants to provide online customer ordering and delivery services.

The company charges fees to contracted restaurants per customer order, and the fees are generally charged as a certain percentage of the restaurant menu price of each order.

Impacted restaurants will be connected regarding the settlement and if restaurants have questions they can contact the Attorney General’s Insurance and Financial Services hotline at 888-830-6277.

By Zack Clapp, CapeCod.com NewsCenter

About Grady Culhane

Grady Culhane is a Cape Cod native from Eastham. He studied media communications at Cape Cod Community College and joined the CapeCod.com News Center in 2019.

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