FTC Sends $23.8 Million in Grubhub Refunds to 640,000 Drivers and Diners

The Federal Trade Commission is distributing more than $23.8 million in Grubhub refunds to hundreds of thousands of drivers and diners affected by business practices that regulators alleged were deceptive or unlawful.

The agency said 640,038 people will receive payments, with most getting checks by mail and others receiving money through PayPal. Check recipients have 90 days to cash their payments, while PayPal recipients have 30 days to redeem them.

Grubhub refunds follow 2024 settlement.

The payments stem from a case brought by the FTC and Illinois Attorney General Kwame Raoul in December 2024. Regulators accused Grubhub of misleading drivers about potential earnings, preventing some diners from accessing accounts and stored funds, and listing restaurants on its delivery platform without their permission.

The complaint alleged that Grubhub had listed as many as 325,000 unaffiliated restaurants. Regulators said some restaurants continued to appear on the platform even after requesting removal, while diners could encounter outdated menus, higher fees, and ordering problems.

Driver compensation was another focus of the case. The FTC alleged that Grubhub advertised hourly earnings substantially above what most drivers actually received, including promotions in New York and Chicago that highlighted pay levels reached by only a small percentage of workers.

Settlement changed Grubhub business practices

Under the settlement, Grubhub agreed to changes covering its relationships with diners, drivers and restaurants. The company must support driver earnings claims with evidence, provide consumers with a way to challenge blocked accounts and stop listing restaurants without their consent.

The agreement also requires Grubhub to disclose the true cost of delivery and provide a simpler cancellation process for Grubhub+ subscriptions.

The settlement included a $140 million monetary judgment, with a portion suspended based on Grubhub’s ability to pay. The company was required to pay $25 million, with nearly all of that amount designated for refunds to people affected by the alleged conduct.

FTC begins payments to affected users

The latest distribution marks the point at which much of that settlement money is reaching eligible drivers and diners. The FTC said consumers do not have to pay money or provide account information to receive a legitimate payment from the agency.

People with questions about their refund can contact the administrator identified by the FTC. The distribution brings the Grubhub case from an enforcement action over alleged marketplace practices to direct financial relief for affected users.