Grubhub's $23.8 million settlement is now being distributed to more than 640,000 drivers and customers, marking a major consumer restitution effort in the food delivery sector.
The Federal Trade Commission said most eligible recipients will receive a paper check, while some payments will be sent through PayPal. The compensation follows claims that Grubhub overstated earning potential for drivers and used business practices that misled users and restaurants.
What the settlement covers
According to the case, the company was accused of presenting inflated driver earnings, limiting some customers' access to accounts and funds, and adding restaurants to its platform without clear permission. Regulators also said the platform included hundreds of thousands of restaurant listings that were not actually affiliated with Grubhub, helping the service appear larger than it was.
The agreement requires Grubhub to improve how it advertises driver income, offer a way for customers to contest account restrictions, and secure restaurant consent before publishing listings. These changes are designed to make platform operations more transparent and more accountable.
The distribution comes after another Grubhub settlement involving California delivery drivers received final approval last month, adding to a broader wave of scrutiny across the delivery app industry. The case highlights how digital marketplaces are being pushed toward clearer standards for earnings, access, and consent.
As platform-based services continue to expand, this settlement may help shape a more transparent future for gig work and online commerce.
