The District of Columbia is suing meal delivery company Grubhub, saying it misled customers with a promotion that claimed to help restaurants during the height of the pandemic. The lawsuit, filed Monday, also alleges that Grubhub deceives customers by obscuring added fees and failing to disclose that its prices for menu items may be higher than restaurants' prices, the AP reports. "We are seeking to force Grubhub to end its unlawful practices and be transparent so DC residents can make informed decisions about where to order food and how to support local businesses," DC Attorney General Karl Racine said in a statement.
The lawsuit says Chicago-based Grubhub launched a promotion throughout the US in March 2020 called "Supper for Support," which offered consumers $10 off orders of $30 or more. Grubhub presented the program as a way for consumers to help local restaurants survive the pandemic but didn't make clear that participating restaurants had to fund the $10 discount themselves and had to pay Grubhub commissions based on the non-discounted order totals, the lawsuit says. Similar claims have been made in lawsuits filed against Grubhub by the city of Chicago and the state of Massachusetts.
Grubhub said it complies with Washington's laws and some of the practices cited—such as delivering from non-partner restaurants or setting up websites that mimic a restaurant's—have been discontinued. Grubhub said it has spent the last year talking to the DC attorney general’s office and is "disappointed" that Racine moved forward with the lawsuit. "We will aggressively defend our business in court and look forward to continuing to serve DC restaurants and diners," it said in a statement. But Grubhub also said it would make some changes going forward, including more clearly listing service fees and other added charges during the checkout process. (More grubhub stories.)
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