If you've ever ordered through Grubhub, you might be in for a slice of a recent $3.5 million settlement levied against the food order app for its deceitful marketing practices. Charging hidden fees to your customers isn't exactly a good business practice, and now the Attorney General for Washington D.C., Karl Racine, is making Grubhub foot the bill.
Posting to his Twitter account, the AG had this to say about his office's settlement with Grubhub.
My office reached a $3.5 million settlement with Grubhub for charging customers hidden fees and using deceptive marketing techniques.
— AG Karl A. Racine (@AGKarlRacine) December 30, 2022
As a result, $2.7 million will be returned to the consumers who were impacted, and it will have to shape up and disclose every fee separately.
Obviously, people had a thing or two to say about the settlement and Grubhub's hidden fee practices.
@jubatuslover is definitely interested in getting in on the financial end of the settlement.
Where's my check?
— Jubatus Lover (@jubatuslover) December 30, 2022
@meg122t thought A.G. Racine was doing a great job, and the new A.G. would have quite the standard to meet.
Thank you for your service
— Meg (@meg122t) December 31, 2022The new AG will have some pretty big shoes to fill.
@HeatherMCurtis1 let everyone know just how their Grubhub refund would hit their accounts.
If you've used Grub Hub to order delivery in the District, you may be getting a credit to your account soon. Grubhub has to give $2.7 million dollars in refundable credits to District customers as part of a settlement in a lawsuit filed by @AGKarlRacine last March. https://t.co/MJ85tcW5t8
— Heather Curtis (@HeatherMCurtis1) December 30, 2022
@MistralWinds is done with Grubhub and any other food service app
I won't use grubhub or any of them anymore. Far too expensive.
— Chloe (@MistralWinds) December 31, 2022
The Attorney General posted the agreement he issued to settle with Grubhub over the lawsuit.
In the District, you can’t break the law to make a quick buck without facing consequences.
— AG Karl A. Racine (@AGKarlRacine) December 30, 2022
Read the agreement: https://t.co/oZ0jt3QsFn
User @deadspatulainc wanted an assurance that Grubhub didn't retain a profit for their deceitful practices.
In the District, you can’t break the law to make a quick buck without facing consequences.
— AG Karl A. Racine (@AGKarlRacine) December 30, 2022
Read the agreement: https://t.co/oZ0jt3QsFn
@RepQuality posted a reply from Grubhub on the settlement outcome.
https://t.co/dQRgAtHril
— Reputation Services (@RepQuality) December 30, 2022
Grubhub: ordered to pay a $3.5 million settlement. “Grubhub's hidden fees and misleading marketing tactics…”
Grubhub: “Settling this lawsuit is in the best interest of our business and the matter is now resolved.”
Resolved? PR and reputation wise, no.
@labrzombiezzz is pretty sure Grubhub isn't the only company looking at a settlement lawsuit.
There are lawsuits like this happening EVERYWHERE.
— LabRZombiezzz (@labrzombiezzz) December 31, 2022
I'll try to post those I come across.https://t.co/rIr37ZEUfk
@justcantmakeup is pretty sure stories like this are ‘too good to make up.'
Can't make this up. https://t.co/BXBbyCg235
— Chris Jones (@justcantmakeup) December 31, 2022
Past customers of the food delivery service Grubhub are in for a nice start to the new year as settlement credits hit their accounts. As for anyone without an active account, A.G. Racine had this to say. “Those with active Grubhub accounts will receive a refundable credit and if the credit is not used within 90 days the money will be sent to customers in the form of a check.”
While it's not the largest company fraud case to ever be settled successfully, customers of the once-popular delivery service will at least recoup some of the fees they shouldn't have been charged. It also goes to the larger picture, putting other such companies on notice that trying to scam your customer base is not only illegal, but also unethical and just bad business.
Should Grubhub survive the backlash, it might be a good idea to do a heavy review of their business marketing model and make some changes in the new year.
This article was produced and syndicated by Wealth of Geeks.
source https://wealthofgeeks.com/grubhub-lawsuit/
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