February 27, 2024 • Featured Resource
Grubhub Sued Over Misleading and Deceptive Business Practices
The Digital Restaurant Association Commends Los Angeles County for Holding Third-Party Delivery Platforms Accountable for Unfair Deceptive Business Practices
On February 21, 2024, Los Angeles County filed a lawsuit against Grubhub alleging “false and deceptive advertising, misrepresentation and unfair business practices that financially harm consumers, delivery drivers and restaurants.”
The lawsuit follows a pattern of complaints from consumers, delivery drivers, and restaurant owners who have reported harmful experiences with Grubhub’s business practices. These practices include deceptive advertising of “free” delivery options that result in unexpected fees, manipulation of search results to prioritize paid placements, and the misrepresentation of fees as providing benefits to delivery drivers.
The Digital Restaurant Association (DRA), a non-profit focused on helping local restaurants thrive in a digital world, commends Los Angeles County for taking the necessary action to hold third-party delivery platforms accountable for unfair and deceptive business practices, especially deceptive and excessive fees charged to consumers and restaurants.
“We believe that this litigation is a great first step,” said Joe Reinstein, Executive Director of the DRA. “We hope that local and state governments across the country investigate other unfair business practices expressed by the other major players that dominate online order and delivery.”
Grubhub’s alleged actions are emblematic of a broader issue within the third-party delivery industry. Similar concerns have been raised regarding other major players like DoorDash and UberEats. Collectively, these platforms dominate 99% of the online ordering and food delivery market in the country.
To learn more about DRA’s advocacy efforts to protect local Los Angeles restaurants from the predatory practices of large third-party delivery platforms, visit https://www.savelarestaurants.com. To join the DRA, visit digitalrestaurants.org/joinus/