FTC payouts begin after Grubhub settlement

Checks are finally landing in mailboxes. The Federal Trade Commission said Wednesday that it is distributing $23.8 million to 640,038 Grubhub customers and drivers, closing a chapter that began with a December 2024 lawsuit accusing the food delivery company of misleading workers about earnings and other deceptive practices.

Most recipients will get a check in the mail, while some will receive their payments through PayPal, according to the FTC announcement.

The origin: a December 2024 lawsuit

The payout follows a suit filed jointly by the FTC and the Illinois attorney general against Grubhub in December 2024. The complaint alleged a range of unlawful practices: misleading claims about how much drivers could earn, restricting customers' access to their accounts and money, and listing restaurants on the platform without their permission.

The restaurant listings problem

One of the more striking allegations centered on Grubhub's restaurant catalog. According to the complaint, as many as 325,000 restaurants on the platform were not affiliated with Grubhub at all. The FTC alleged that Grubhub used those listings to make its platform appear larger than it actually was.

The complaint also claimed that Grubhub sometimes refused to remove restaurants after they asked to be taken off the platform. Instead, the company allegedly tried to convince some of those businesses to enter into paid partnerships.

What the settlement requires

Under the settlement, Grubhub must change how it operates in several specific areas: it must be more accurate when advertising potential driver earnings; it must give customers a way to challenge account restrictions that leave them unable to access their accounts or funds; and it must obtain a restaurant's consent before listing it on the platform.

These operational requirements are designed to address the core practices named in the complaint, rather than merely imposing a financial penalty.

Recent history: another settlement in California

Wednesday's announcement comes just one month after a federal judge granted final approval of another settlement worth nearly $25 million involving approximately 60,000 Grubhub delivery drivers in California. That case, which was granted final approval in July, adds to the mounting legal pressure on the company.

• $23.8 million — total being distributed in the FTC settlement
• 640,038 — number of consumers receiving payouts
• 325,000 — restaurants allegedly listed without affiliation
• ~60,000 — California drivers covered by the separate July settlement

Not an isolated case in the industry

Grubhub isn't the only delivery company to face scrutiny. DoorDash has previously faced criticism and legal challenges over driver compensation, while Uber Eats has dealt with allegations involving customer charges and its relationships with restaurants. The pattern suggests a broader reckoning for the gig-delivery sector, not just one company.

What this means for consumers and drivers

The practical takeaway for diners and delivery workers is that payouts are now in motion — but the settlement's operational changes may matter more than the checks themselves. Grubhub is now bound by rules that require clearer earnings disclosures and a fairer process for disputing account restrictions.

For the wider industry, this settlement could signal that regulators are scrutinizing how delivery platforms treat both workers and the restaurants listed on their apps. The requirement to obtain consent before listing a restaurant sets a precedent that other platforms may need to follow.