DC sues Grubhub, claiming its app is full of hidden fees and jacked-up prices - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/03\/22\/dc-sues-grubhub-claiming-its-app-is-full-of-hidden-fees-and-jacked-up-prices\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DC sues Grubhub, claiming its app is full of hidden fees and jacked-up prices - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: District of Columbia Attorney General Karl Racine is suing Grubhub for deceptive business practices, saying its food delivery app covertly inflates prices for diners who order through it. The suit demands an end to a laundry list of allegedly illegal practices as well as financial restitution and civil penalties. 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\n

District of Columbia Attorney General Karl Racine is suing Grubhub<\/a> for deceptive business practices, saying its food delivery app covertly inflates prices for diners who order through it. The suit demands an end to a laundry list of allegedly illegal practices as well as financial restitution and civil penalties.<\/p>\n
The newly filed lawsuit<\/a> argues that Grubhub\u2019s promises of \u201cfree\u201d online orders \u2014 and \u201cunlimited free delivery\u201d for Grubhub Plus \u2014 are misleading. While customers can make pickup orders for free, the company charges delivery and service fees for standard orders and service fees for Grubhub Plus orders, displaying the service fee until recently as part of a single line with sales taxes. \u201cGrubhub misled District residents and took advantage of local restaurants to boost its own profits, even as District consumers and small businesses struggled during the COVID-19 pandemic,\u201d said Racine in a statement. \u201cGrubhub charged hidden fees and used bait-and-switch advertising tactics \u2014 which are illegal.\u201d<\/p>\n
\n\u201cGrubhub misled District residents and took advantage of local restaurants\u201d<\/q><\/aside>\n<\/div>\nThe complaint says Grubhub orders often cost more<\/a> than ordering the same item at a restaurant and argues that the company fails to reasonably disclose this to consumers. \u201cBecause Grubhub already charges consumers several different types of fees for its services … consumers expect that the menu prices listed on Grubhub are the same prices offered at the restaurant or on the restaurant\u2019s website,\u201d it says.<\/p>\n
As previously reported by news outlets including The Verge<\/em><\/a>, Grubhub has also listed many restaurants without their permission to expand its service, routing orders through its services and taking a commission. The complaint says it listed \u201cover a thousand\u201d restaurants in DC that had no connection with the company, asserting that the unapproved listings often contained menu errors and resulted in orders that would \u201ctake longer to fill, would be filled incorrectly, would be delivered cold, or would eventually be cancelled altogether.\u201d<\/p>\n
Grubhub \u2014 which also operates Seamless and several other food delivery apps \u2014 has made more elaborate attempts to insert itself into restaurant transactions as well. The lawsuit notes its launch of unsanctioned microsites<\/a> that appear to be official restaurant sites, as well as custom phone numbers that let it charge fees<\/a> when customers call restaurants, even when the calls didn\u2019t result in orders. The company also offered a \u201cSupper for Support\u201d promotion that required restaurants to foot the bill<\/a> for a special discount; it offered restaurants $250 in compensation<\/a> after a backlash.<\/p>\n
\nGrubhub insists it hasn\u2019t misrepresented its fees<\/q><\/aside>\n<\/div>\nGrubhub indicated that it would fight the lawsuit and said many of the practices it describes are either appropriately disclosed or have been discontinued. \u201cDuring the past year, we\u2019ve sought to engage in a constructive dialogue with the DC attorney general\u2019s office to help them understand our business and to see if there were any areas for improvement,\u201d said Katie Norris, director of corporate communications, in a statement to The Verge<\/em>. \u201cWe are disappointed they have moved forward with this lawsuit because our practices have always complied with DC law, and in any event, many of the practices at issue have been discontinued. We will aggressively defend our business in court and look forward to continuing to serve DC restaurants and diners.\u201d<\/p>\n
Grubhub\u2019s statement says the app no longer lists restaurants that haven\u2019t agreed to work with it, and it\u2019s retired its microsites and the Supper for Support program. It also includes disclosures in its terms of use \u2014 although \u201cmoving forward,\u201d it will more prominently tell users that prices might be lower when ordering directly from the restaurant, and it will specify in marketing that only pickup orders are free. \u201cGrubhub has not misrepresented its fees,\u201d it says.<\/p>\nGrubhub is far from the only delivery app<\/a> charging higher fees that customers aren\u2019t necessarily aware of, nor is it the only one that\u2019s come under legal fire. Last year, the city of Chicago sued both Grubhub and DoorDash<\/a> on similar grounds, and it publicized an amended complaint<\/a> last month. Conversely, Grubhub and other delivery app companies have sued cities for fee caps<\/a> implemented during the COVID-19 pandemic \u2014 which the companies have called a legal overreach.<\/p>\n<\/div>\n

<\/br><\/code><\/p>\n
Source: https:\/\/www.theverge.com\/2022\/3\/21\/22989563\/district-of-columbia-karl-racine-grubhub-lawsuit-misleading-fees<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Source: District of Columbia Attorney General Karl Racine is suing Grubhub for deceptive business practices, saying its food delivery app covertly inflates prices for diners who order through it. The suit demands an end to a laundry list of allegedly illegal practices as well as financial restitution and civil penalties. The newly filed lawsuit argues […]<\/p>\n","protected":false},"author":1,"featured_media":1993,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,8],"tags":[16],"class_list":["post-1992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-policy","category-technology","tag-policy"],"yoast_head":"\nDC sues Grubhub, claiming its app is full of hidden fees and jacked-up prices - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/03\/22\/dc-sues-grubhub-claiming-its-app-is-full-of-hidden-fees-and-jacked-up-prices\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DC sues Grubhub, claiming its app is full of hidden fees and jacked-up prices - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: District of Columbia Attorney General Karl Racine is suing Grubhub for deceptive business practices, saying its food delivery app covertly inflates prices for diners who order through it. 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