Duped diners are claiming victory as a popular food delivery giant gets cooked in a multimillion-dollar lawsuit, revealing a staggering case of hidden fees and corporate greed.
GrubHub, the prominent food delivery service, has landed in hot water, facing the aftermath of a damaging lawsuit that leaves them owing millions to customers in Washington D.C. In a glaring display of corporate greed, GrubHub had been concealing fees from 2016 to 2022, deceitfully inflating the costs paid by unsuspecting customers. Now, they're paying the price. The company has agreed to cough up a whopping $3.5 million in refunds as part of their lawsuit settlement.
This explosive lawsuit was set in motion early in 2022 by D.C. Attorney General Karl Racine. He accused GrubHub of indulging in false advertising, allegedly offering "free delivery" to Grub Hub Plus subscribers. However, beneath this seemingly attractive offer, the company hid undisclosed fees, duping customers into spending more on their food delivery than they had anticipated.
The company wasn't merely content with covert service and delivery charges. It seems they also took liberties with restaurant menus, inflating prices of items in comparison to those listed on the original restaurant menus. GrubHub preyed upon the trust of its customers, offering them 'free' delivery while systematically adding on hidden fees to their orders.
In a statement, Racine said, "GrubHub used every trick in the book to manipulate customers into paying far more than they owed, and even worse, they did so at the height of a global pandemic when District residents were already struggling to make ends meet."
Victorious customers residing in Washington D.C., who have ordered through GrubHub, can now expect a refund credit in their GrubHub accounts. Any customers who made orders between January 1, 2016, and December 31, 2022, are eligible for the benefit, provided they live in the area surrounding the United States Capitol.
Refunds will be distributed in three phases, with each refund amounting to a humble $4.50 to $10, dependent on the frequency of the individual's past orders. However, this refund comes with a catch - customers must redeem it within ninety days. If they fail to do so, the company will issue a check instead.
Racine's statement further addressed the matter, saying, "Grubhub's hidden fees and misleading marketing tactics were designed to get the company an extra buck at the expense of D.C. residents, but we're not letting them get away with it."
While GrubHub denied any wrongdoing, they opted to settle the lawsuit. Grubhub spokesperson, Liza Dee, commented, “Settling this lawsuit is in the best interest of our business, and the matter is now resolved. Grubhub is committed to supporting all restaurants and diners and is taking a number of steps to ensure price transparency.”
This scandal isn't GrubHub's first run-in with controversy. In 2019, the company was accused of "cybersquatting," a scheme in which they reportedly created around 30,000 fraudulent websites linked to restaurant homepages.
This deceitful tactic allowed them to inflate prices and levy commission fees, taking advantage of both their customers and restaurants. This recent lawsuit serves as a stark reminder of the necessity for corporate transparency and fair business practices.
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