The Federal Trade Commission is sending more than $23.8 million to 640,038 Grubhub users who were harmed by the company’s deceptive practices. Payments began in August 2026 and are arriving by check or PayPal.
Why Is This Happening?
In December 2024, the FTC and Illinois Attorney General filed a complaint against Grubhub alleging the company deceived drivers about how much money they would make, hid the true cost of delivery from diners, blocked consumer accounts without warning, and listed restaurants on its platform without their permission.
Grubhub agreed to a settlement that included a $140 million judgment, largely suspended, requiring $25 million upfront, nearly all of which was earmarked to refund consumers harmed by the company’s conduct. The $23.8 million now being distributed is that consumer refund fund.
Who Qualifies for a Grubhub Payment?
The FTC identified eligible recipients automatically using available records. You do not need to submit an application or claim form.
How Are Payments Being Sent?
The FTC is distributing refunds by check or PayPal. Most recipients receive a check in the mail.
Check Recipients:
- Must cash the check within 90 days of receipt
PayPal Recipients:
- Must accept or redeem the PayPal payment within 30 days
You should not need to take any action to receive your payment. The FTC will send it automatically based on their records. If a check or PayPal payment expires before you act on it, see the payment status section below.
How Much Is Each Payment?
The average payment amount has not been specified by the FTC. Individual payment amounts vary based on the nature and extent of harm each person experienced.
The Deceptive Practices in Detail
Hidden Delivery Fees
Grubhub advertised low delivery costs but added multiple hidden fees to orders, often doubling the final price. The company described these “service fees” and “small order fees” as delivery fees in disguise.
In an internal message cited by regulators, a former Grubhub executive described the pricing tactic as “misleading, eroding trust.” For accounting purposes, the company treated delivery fees and service fees as part of the same overall delivery charge.
Deceptive Grubhub+ Subscription Claims
Grubhub advertised its subscription service as offering “free” or “$0” delivery, but subscribers still paid delivery charges. The company also made cancellation difficult, creating barriers to exiting the subscription even though diners requested to cancel.
Blocked Accounts and Trapped Funds
Grubhub regularly blocked diner accounts containing gift card balances without warning or explanation. In one month tracked by regulators, 97% of blocked accounts were never unlocked. Consumers who complained were given no meaningful way to contest the block or recover their funds.
Fake Restaurant Listings
Since at least 2019, Grubhub added unaffiliated restaurants to its platform without permission. At its peak, over 325,000 unaffiliated restaurants (more than half of all restaurants on the platform) were listed without consent.
This practice harmed restaurants by diverting orders meant to go directly to them, and harmed diners who ordered from restaurants that were not actually fulfilling Grubhub orders, leading to late deliveries and poor service for which restaurants were blamed.
When restaurants demanded removal, Grubhub tried to sell them paid partnerships before removing them from the platform.
Deceptive Driver Earnings Claims
Grubhub advertised inflated hourly pay rates to recruit drivers, claiming earnings far above what drivers actually made.
In New York, Grubhub claimed drivers could make up to $40 per hour when the median was around $10 per hour and only 1 in 1,000 drivers earned the advertised rate. In Chicago, ads promised up to $26 per hour when the median was $11 per hour and less than 2% of drivers made the claimed amount.
The FTC had issued a formal warning about deceptive earnings claims to Grubhub in 2021, but the company continued making inflated claims after receiving the notice.
What Happens If Grubhub Doesn’t Comply?
That judgment is contingent. If Grubhub is found to have misrepresented its financial status, the full $140 million becomes immediately due.
What Changes Must Grubhub Make?
Under the settlement order, Grubhub is required to:
- Disclose the full cost of delivery upfront and stop adding hidden junk fees
- Notify consumers when their account is blocked, provide an appeal process, and quickly restore access if the block is removed
- Offer a simple cancellation mechanism for Grubhub+ subscriptions and remind users about their subscription at least annually
- Stop listing unaffiliated restaurants on the platform
- Only make driver earnings claims that are truthful and backed by written evidence
How to Check on Your Payment Status
If you believe you are eligible but have not received a payment, or if you have questions about your refund, contact the FTC’s refund administrator:
Analytics Consulting LLC
Phone: 1-888-446-4992
You can also visit the FTC’s Grubhub refund page for frequently asked questions and payment updates.
About Grubhub
Grubhub is an online food delivery platform headquartered in Chicago, Illinois. The company allows diners to order from restaurants via its app and website, and contracts with independent drivers to deliver orders. Grubhub also operates Seamless, another food delivery brand.
About This Page
RecallRefunds.com is a consumer information site. We are not the FTC, a settlement administrator, a law firm, or Grubhub, and we cannot process claims or access payment status on your behalf. This article summarizes publicly available settlement and regulatory information and is general information rather than legal advice. Settlement terms, deadlines, and payment details can change; the official FTC settlement page and press releases are the authoritative sources.