640,000 Grubhub Users to Receive $24M Settlement Checks

More than half a million people are about to get some good news in their mailbox, thanks to a major settlement holding a food delivery giant accountable.

The Federal Trade Commission announced this week that it's sending $23.8 million to 640,038 Grubhub drivers and customers. Most will receive checks by mail, while some payments will arrive through PayPal.

The payout follows a December 2024 lawsuit filed by the FTC and Illinois attorney general. The complaint accused Grubhub of misleading drivers about potential earnings, restricting customers from accessing their accounts and money, and listing restaurants on its platform without permission.

Some of the allegations were eye-opening. At one point, Grubhub had as many as 325,000 restaurants listed that weren't actually affiliated with the platform. The FTC said the company used these unauthorized listings to make itself look bigger than it was.

Even more troubling, when restaurants asked to be removed, Grubhub sometimes refused. Instead, the company allegedly tried to pressure them into paid partnerships.

The Bright Side

This settlement does more than just compensate people who were harmed. It requires real changes to how Grubhub operates going forward.

The company must now be honest and accurate when advertising how much drivers can earn. It has to give customers a clear way to challenge account restrictions that lock them out of their money. And critically, Grubhub must get a restaurant's permission before listing it on the platform.

These changes create stronger protections for everyone using the platform. Drivers can make more informed decisions about whether gig work makes financial sense. Customers have better recourse when problems arise. And small business owners get control over their own restaurant listings.

The settlement also comes on the heels of another major win. Just last month, a federal judge approved a separate $25 million settlement for approximately 60,000 Grubhub drivers in California.

Together, these cases send a powerful message to the entire gig economy. Companies can't make inflated promises to workers or treat customers unfairly without consequences. Regulators are watching, and they're willing to take action.

When powerful companies break the rules, accountability can actually happen.