Grubhub's $24M FTC Settlement Payments Now Reaching Recipients
Original: Grubhub’s $24M FTC settlement is finally reaching diners and drivers
Why This Matters
The case highlights ongoing regulatory pressure on gig-economy food delivery platforms over labor and consumer practices.
The FTC announced on August 12, 2026 that it is distributing $23.8 million to 640,038 Grubhub drivers and customers. The payments stem from a December 2024 lawsuit filed by the FTC and Illinois attorney general alleging deceptive practices by the food delivery company.
The FTC is distributing $23.8 million to 640,038 Grubhub drivers and customers following a lawsuit filed in December 2024 by the FTC and the Illinois attorney general. Most recipients will receive checks by mail, while others will be paid via PayPal. The complaint alleged that Grubhub misled drivers about potential earnings, restricted customers from accessing their accounts and funds, and listed up to 325,000 non-affiliated restaurants on its platform without permission to make the service appear larger. Grubhub also allegedly resisted removing non-partnered restaurants and instead tried to convert them into paying partners. Under the settlement terms, Grubhub must accurately advertise driver earnings, provide a process for customers to challenge account restrictions, and obtain restaurant consent before listing them. The announcement comes one month after a federal judge granted final approval of a separate ~$25 million settlement involving approximately 60,000 California-based Grubhub delivery drivers. Competing platforms DoorDash and Uber Eats have also faced legal scrutiny over similar issues related to driver pay and restaurant relationships.