Grubhub to receive $23.8 million in FTC refunds for drivers and diners

The Federal Trade Commission (FTC) is distributing more than $23.8 million in refunds to 640,038 Grubhub drivers and diners. The payments follow a settlement regarding allegations that the food-delivery company misrepresented driver earnings and engaged in unlawful practices.

The settlement, which involved the FTC and the Illinois Attorney General, addressed claims that Grubhub misled drivers about potential pay, improperly blocked diners from accounts and funds, and listed restaurants on its platform without their consent. As part of the enforcement action, Grubhub was required to change its business practices, including accurately advertising driver pay and establishing processes for users to dispute blocked accounts.

Recipients will receive payments via check or PayPal. Most individuals will receive checks by mail, which must be cashed within 90 days, while PayPal recipients have 30 days to redeem their funds. The average payment is approximately $37 per recipient, though individual amounts may vary.