Class Action Alleges GrubHub Lies About Delivery Fees for App Orders

A proposed class action filed in Illinois alleges GrubHub, Inc. systematically deceives consumers by increasing delivery fees and charging app users extra for restaurant orders placed through the company’s mobile app. These extra fees, the lawsuit says, are contrary to the prices displayed by GrubHub in the restaurant lists presented to app users.

“GrubHub employs a business model that systematically deceives its customers by charging them increased delivery fees after selecting a restaurant using GrubHub’s mobile app,” the case alleges. “In clear violation of the law, GrubHub offers one price, and then charges another, for delivery after the consumer selects a restaurant.”

I still order food the old-fashioned way. What exactly is GrubHub?

GrubHub is a service that allows users to order food from restaurants through its popular mobile app. Through its app, users can scroll through a list of local restaurants and then place delivery or pick-up orders. With this list of nearby eateries, users are told how far they are from the restaurant, the anticipated delivery time, restaurant user ratings, and a listed delivery fee. Food is paid for electronically with a debit or credit card.

Once users select which restaurant they’d like to order from, the lawsuit alleges, GrubHub swaps out the listed delivery fee for a higher charge.

“Consumers rely on GrubHub’s false delivery prices to their detriment, basing their choice of restaurant in part on the listed delivery price,” the 14-page lawsuit claims.

Inadequate Notice

The lawsuit takes issue with GrubHub’s alleged failure to provide users with adequate notice that the delivery price they were presented with when ordering from the app will change once they select a restaurant. GrubHub knows full well the fees it shows to app users are not the actual prices charged for deliveries, which leads consumers to incur unanticipated extra costs when placing orders, the lawsuit claims.

Who’s covered by the lawsuit?

The suit includes a proposed class of consumers nationwide who placed an online restaurant delivery order through GrubHub’s app wherein the true delivery price increased from the cost presented in the initial list of restaurants.

The full complaint can be read below.