It has a long list of shady practices, unfortunately.
Attorney General Karl Racine of the District of Columbia filed a lawsuit against Grubhub for its list of shady practices. The lawsuit stated that the food delivery app inflated its prices but the increase wasn’t straightforward. The newly filed lawsuit demands that the app must stop its illegal practices and final restitution.
According to the lawsuit, Grubhub promoted its services by providing its customers with free online orders and unlimited free delivery for Grubhub Plus. But these promos are misleading.
Customers can, indeed, pick up their orders for free. However, the company will charge delivery fees for standard orders. Grubhub Plus orders will also entail service fees.
The suit stated that the app deceived District residents. It took advantage of the situation to boost its own profits. Furthermore, Grubhub utilized bait-and-switch ad tactics, which are considered illegal.
“NEW: We’re suing Grubhub for misleading District residents and taking advantage of local restaurants to boost its own profits. Grubhub charges hidden fees and uses bait-and-switch tactics, all while pretending to help local businesses during the pandemic. This needs to stop.”AK Karl A. Racine
When you order through Grubhub, the orders will cost more than when you order the same item at a restaurant. The complaint argues that it fails to disclose the terms and conditions to its consumers.
The lawsuit states that Grubhub has already charged consumers various fees for the services. Thus, consumers expect that the prices on the menu are the same prices being offered at the local restaurant. But it’s not the case.
Furthermore, the company listed restaurants without getting their permission just to expand its service. The company routed the orders and took a commission.
The suit revealed a thousand restaurants in DC with no connection to the company. As a result, the unapproved lists contained menu errors. Thus, orders from these unapproved listings would get a “take longer to fill…” message.
Of course, the delivery app said that it would fight the suit. According to the company, many of those practices have been disclosed property and some have been discontinued.
Grubhub said that it wanted to have a constructive dialogue with the DC attorney general office to make them understand its business model. However, the office moved forward with the suit. The company maintained that it has always complied with the law. Many of the practices mentioned in the suit have been stopped.
The company also stated that it has already removed restaurants that didn’t agree to work with them from the list. It has also discontinued its microsite and stopped Supper for the Support program.
However, this delivery app isn’t the only app that charges higher fees that customers may not be aware of. It’s also not the only company that has been sued.
Last year, DoorDash has been sued on similar complaints. One of the objections involved the company’s tipping policy. The app solicited tips to pay the drivers’ existing wages, instead of passing the bonus to them.