Grubhub to pay $3.5M settlement in D.C. following allegations of hidden fees

Grubhub has agreed to a $3.5 million settlement with Washington, D.C. Attorney General Karl Racine following a March lawsuit filed by Racine that alleged the company engaged in deceptive and unlawful business practices. Grubhub will pay $2.7 million to impacted customers. Active Grubhub customers will receive a refundable credit or a check if that credit isn’t used within 90 days. Another $800,000 will be paid as a civil penalty to the District. Racine alleged Grubhub charged hidden fees and used “misleading marketing tactics” that were “designed to get the company an extra buck at the expense of D.C. residents.”