HYANNIS – Attorney General Andrea Joy Campbell recently announced that her office successfully secured a ruling from the Suffolk Superior Court that Grubhub Holdings, Inc. illegally overcharged Massachusetts restaurants during the COVID-19 pandemic.
Filed back in July 2021, the lawsuit alleged that Grubhub violated a provision of the state’s economic development legislation prohibiting third-party delivery service platforms from charging fees in excess of fifteen percent of an order’s menu price.
Grubhub was accused of charging fees in excess of eighteen percent.
The company has opposed the lawsuit, arguing in court that it did not violate the rule while questioning the constitutionality of the law itself; declaring it void for vagueness.
In its ruling, however, the Suffolk Superior Court ruled that Grubhub had indeed violated the statute and dismissed what it derided as a “scattershot of constitutional arguments” made by the company in its defense.
“I am proud of the team and this thoughtful ruling which found that Grubhub illegally overcharged Massachusetts’ restaurants as they struggled to stay afloat during the pandemic,” said Campbell. “We look forward to continuing with our case to hold the company accountable and refund restaurants for the fees they were illegally charged.”
The lawsuit remains active, with Assistant Attorney General Michael Sugar and Legal Analyst Maggie Wallace of Campbell’s Insurance and Financial Services Division handling the case.
By, Matthew Tomlinson, CapeCod.com NewsCenter
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