Legal Action Initiated Against Grubhub for Alleged False Advertising
Los Angeles County has initiated legal proceedings against food delivery giant Grubhub, accusing the company of engaging in false advertising, misrepresentation, and unfair business practices detrimental to consumers, drivers, and restaurants. The lawsuit, filed by County Counsel Dawyn R. Harrison, addresses a range of alleged deceptive practices by Grubhub, including misleading fees, bait-and-switch tactics, and misrepresentation of restaurant search results. The legal action seeks injunctive relief to halt these practices and impose civil penalties.
“This lawsuit sends a clear message: Los Angeles County will not tolerate businesses that deceive consumers, take advantage of restaurants, and exploit the drivers who work hard to provide a valued service,” stated Lindsey P. Horvath, Chair of the Los Angeles County Board.
The lawsuit claims that Grubhub employs deceptive tactics, such as falsely advertising online orders as “free” and then imposing fees during checkout. Bait-and-switch strategies involve presenting a flat delivery price upfront and adding undisclosed fees later. Additionally, Grubhub is accused of misrepresenting restaurant search results, allegedly influenced by payments made by restaurants for placement.
Drivers, according to the lawsuit, are misled by Grubhub’s presentation of the “Driver Benefits Fee,” suggesting it provides healthcare benefits and discourages tipping. Restaurants are allegedly charged for customer refunds without their consent, creating financial strain.
Consumers, drivers, and restaurants affected by Grubhub’s practices are encouraged to share their experiences with the Los Angeles County Department of Consumer and Business Affairs (DCBA). Complaints can be submitted via email (info@dcba.lacounty.gov), online filing, or by calling 800-593-8222.
County Counsel Dawyn R. Harrison emphasized, “Our lawsuit seeks to hold Grubhub accountable for their unfair and deceptive business practices that deceive and overcharge consumers, exploit drivers, and unfairly short-change restaurants on order refunds.”
The lawsuit, filed in Los Angeles Superior Court, aims to curb Grubhub’s alleged unfair practices and impose civil penalties. County Counsel’s Affirmative Litigation and Consumer Protection Division, along with the law firm Cohen Milstein Sellers & Toll PLLC, will handle the case.
