Grubhub agrees to a $3.5 million settlement with Massachusetts for fees charged during the pandemic
Massachusetts Attorney General Andrea Campbell announced a $3.5 million settlement with the online food delivery service platform Grubhub
BOSTON — Massachusetts Attorney General Andrea Campbell announced a $3.5 million settlement Friday with the online food delivery service platform Grubhub.
The settlement resolves a 2021 lawsuit brought by Campbell alleging Grubhub illegally overcharged fees to Massachusetts restaurants in violation of a state fee cap put in place during the COVID-19 public health emergency.
Under the terms of the settlement, Grubhub will pay a combined total of over $3.5 million to impacted restaurants, Campbell said. Grubhub will also pay $125,000 to the state.
“Grubhub unlawfully overcharged and took advantage of restaurants during a public health emergency that devastated much of this industry,” Campbell said in a statement.
A spokesperson for the company said serving restaurants is “at the heart of everything Grubhub does.”
“Our success depends on these valuable merchant partners. While we have always complied with Massachusetts’ temporary price control, we’re ready to move forward from this situation and continue providing Massachusetts restaurants with the best possible service,” the spokesperson said in a written statement.
Grubhub contracts with restaurants to provide online customer ordering and delivery services and charges fees to contracted restaurants per customer order. The fees are generally charged as a certain percentage of the restaurant menu price of each order.
Massachusetts declared a public health state of emergency during the height of the COVID-19 pandemic.
During the emergency — when public traffic to restaurants plummeted and diners increasingly relied on delivery — lawmakers
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